USinternetworking
| Company type | Public |
|---|---|
| Industry | Application service provider |
| Founded | January 1998 |
| Founder | Christopher R. McCleary, Chris Poelma, Stephen McManus |
| Defunct | October 2006 |
| Fate | Acquired by AT&T |
Key people | Christopher R. McCleary (founder, former CEO), Andrew Stern (CEO from 2000), Stephen A. Mucchetti (COO from 2003) |
| Products | Outsourced enterprise applications delivered via Internet or private networks |
| Parent | AT&T |
USinternetworking, Inc. (USi) functioned as an application service provider delivering outsourced enterprise applications through the Internet or private networks, charging an initial setup fee alongside a fixed monthly rate. The company was acquired by AT&T in October 2006.
History
Established in January 1998 by Christopher R. McCleary, Chris Poelma, and Stephen McManus, USi's initial funding came from investors such as Grotech and US West. In February 1998, the firm sought a merger with PSINet, which ultimately did not materialize. By May 1998, USi had secured office space spanning 24,000 square feet.
During the height of the dot-com bubble on April 9, 1999, USi launched its initial public offering, with share prices soaring 174% on the first day to reach $57.50. Later that month, it achieved the distinction of being the first certified Broadvision application service provider. In November 1999, USi revealed intentions to offer Microsoft Office 2000 as an online service.
In July 2000, founder Christopher R. McCleary stepped down as CEO and was replaced by Andrew Stern. The following month, USi expanded by acquiring EnableVision. However, after the dot-com crash, its stock value declined sharply to $1 by mid-2001.
USi filed for bankruptcy protection in January 2002 but reemerged in May after securing funding from Bain Capital and merging with Interpath. Stephen A. Mucchetti joined the company as COO in September 2003.
In June 2004, USi purchased Appshop for a sum between $40 million and $50 million. The company's acquisition by AT&T occurred in October 2006 for $300 million.