divine Reorganizes; Plans to Divest RowCom Subscription Business

Jan 07, 2003


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divine, inc. announced that it will align company into three solution areas to streamline the organization and enhance its ability to address specific business problem sets. The creation of these organizational divisions--Web, Content, and Collaboration Solutions; Customer Interaction Management Solutions; and Managed Services and Infrastructure Solutions--represents the next phase in what divine calls its "mission to deliver end-to-end customer-focused solutions that help them better integrate their business processes and information flow across their extended enterprise." The new solutions-based organizational model more tightly integrates divine's technology and services teams, streamlining management, and reducing operational costs. The new organizational areas are: Web, Content, and Collaboration Solutions--combines all of the technology and services to deliver state-of-the-art Web presence, content solutions, and collaborative systems that allow a business to share information across its value chain. Customer Interaction Management Solutions--includes products and capabilities for managing all of the interactions between a business and its customer, partners, over all communications channels. Managed Services and Infrastructure Solutions--focuses on providing all technologies and offerings that make up an extended enterprise infrastructure and provide a platform for deploying 24/7 systems, including managed hosting, managed applications, business continuity services, security, infrastructure procurement services, implementation services, and hosted applications.

The organizational alignment into solution areas enables divine to streamline the company's management and organizational structure as previously discussed in recent earnings announcements. divine has reduced expenses through ongoing integration and consolidation efforts, and this move to solution areas is expected to eliminate more than $100 million in annual expenses, delivering on the 2003 financial commitments made during previous earnings announcements. "This organizational structure allows us to better focus our sales efforts on larger solution deals, while we reduce the number of organizational layers and streamline decision-making," said divine CFO Michael Cullinane. "As a result, divine will be even more nimble and responsive to market and customer needs." As part of this realignment, divine is announcing its intent to divest the content subscription business delivered through its RoweCom, Inc. subsidiary and focus on digital content delivery. divine and EBSCO Industries Inc. have announced that the two companies have signed a letter of intent under which EBSCO would acquire the European operations of RoweCom, subject to regulatory and board approvals and other customary conditions. divine also has received a term sheet from and is in active negotiations with Swets Blackwell, which has expressed unsolicited, definitive interest in acquiring some or all of the RoweCom operations worldwide.

(http://www.divine.com), (http://www.ebscoind.com), (http://www.swetsblackwell.com)