Divine, Inc.
| Company type | Public |
|---|---|
| Industry | Investment, Internet |
| Founded | 1999 |
| Founder | Andrew Filipowski |
| Defunct | February 25, 2003 |
| Fate | Bankruptcy and liquidation |
| Headquarters | Chicago, Illinois , United States |
Key people | Andrew Filipowski (founder), Michael Jordan (board member) |
| Products | Investments in internet companies |
Divine, Inc. (presented in lowercase), initially known as Divine Interventures, was an investment firm focusing on internet companies during the dot-com bubble. Inspired by the business model of CMGI, the company adjusted its approach after the bubble burst.[1]
Promoting itself as "an Internet Zaibatsu", Divine sought to establish "a network of enterprises collaborating to generate shared opportunities and benefits."[2]
In 2003, following accusations of executive wrongdoing linked to one of its subsidiaries, Divine proceeded to file for bankruptcy and undergo liquidation.
History
Established in 1999 by Andrew Filipowski, Divine's board initially comprised 38 members, including notable figures such as Michael Jordan. On February 3, 2001, a significant restructuring occurred when 27 directors stepped down to simplify governance.[3]
During the collapse of the dot-com bubble, Divine launched its initial public offering in July 2000.[4]
The company underwent a rebranding from Divine Interventures to simply Divine in February 2001.[1]
Throughout 2001, Divine pursued an aggressive acquisition strategy: acquiring most assets of MarchFirst for $120 million in April,[5] purchasing RoweCom with a $14 million stock deal in May,[6] acquiring eShare for $71 million in July,[7] and purchasing Open Market for $59 million in August.[8]
In January 2003, creditors of RoweCom initiated legal action against Divine’s executives, accusing them of fraudulently diverting $73.7 million owed to publishers prior to abandoning the enterprise.[9]
Divine officially declared bankruptcy on February 25, 2003.[10]
By April 2003, its assets were auctioned off for $54 million to a group including Saratoga Partners, Golden Gate Private Equity, Little Bear Investment, and Outtask.[11] Subsequently, Saratoga Partners sold the enterprise content management segment to FatWire, while patents related to Open Market were acquired by Soverain Software.
References
- ↑ 1.0 1.1 Cite error: Invalid
<ref>tag; no text was provided for refs namedplan - ↑ Rose, Barbara (January 22, 2000). "Divining Divine InterVentures". Crain Communications.
- ↑ "FORM 8-K". U.S. Securities and Exchange Commission. February 2, 2001.
- ↑ "Divine interVentures' IPO Disappoints Wall Street". The Wall Street Journal. July 13, 2000.
- ↑ "marchFIRST files Chap. 11". CNN. April 12, 2001.
- ↑ GREENMAN, CATHERINE (May 25, 2001). "Divine In Stock Deal For Rowecom". The New York Times.
- ↑ Rose, Barbara (July 10, 2001). "Divine's buying spree continues". Chicago Tribune.
- ↑ Sullivan, Brian (August 16, 2001). "Divine to buy Open Market". Computerworld.
- ↑ Kaiser, Rob (January 29, 2003). "Lawsuit: Divine looted company". Chicago Tribune.
- ↑ "Divine Inc. files for Chapter 11". The Register. February 27, 2003.
- ↑ Johnsson, Julie (May 2, 2003). "'Flip' not a bidder for Divine assets". Crain Communications.
- 2000 initial public offerings
- Software companies founded in 1999
- Software firms closed in 2003
- Defunct Chicago-based companies
- Inactive online businesses in the United States
- Dot-com bubble
- Companies that declared Chapter 11 bankruptcy in 2003
- 1999 establishments in Illinois
- 2003 closures in California
- American enterprises founded in 1999
- American enterprises closed in 2003
- Defunct California-based companies
- American companies disestablished in 2003