3Com, USWeb/CKS Form Global Alliance to Deliver E-Business Solutions
BUSINESS WIRE - 12/16/99, 9:15 AM EST
Alliance To Develop, Market and Deliver Wireless Solutions for the
Mobile Workplace and Converged Voice, Video and Data Solutions
SANTA CLARA and SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Dec. 16, 1999--
3Com Corporation (Nasdaq: COMS), the market-leading provider of
e-Networks, and USWeb/CKS (Nasdaq: USWB), the leader in Internet
professional services, today announced the formation of a strategic
global alliance to develop, market and deliver wireless applications
for the mobile workplace and converged voice, video and data
solutions. Under the alliance, the parties intend that 3Com will
contribute up to $100 million in a combination of funded development
and an equity investment in USWeb/CKS. The first e-business solution
to be developed under the alliance is expected to be delivered in the
second half of next year.
"The rules of business have been re-written. Every business
interested in succeeding must figure out how it will fit into the new
e-economy," said Bruce Claflin, 3Com President and COO. "3Com provides
best-of-breed networking solutions; USWeb/CKS is a premier Internet
consultant that delivers breakthrough results. Together, we can give
our customers high availability, anytime, anywhere access and the
e-business applications they need to succeed."
"Clients are faced with the opportunity to extend their brands
and business relationships to people -- anywhere, anytime," said
Robert Shaw, CEO, USWeb/CKS. "This alliance marks our commitment to
help our clients take advantage of technological innovations and
succeed in the digital economy."
Scalable Solutions Targeted to Enterprise and Service Provider Markets
A combined worldwide team will offer scalable e-business
solutions for enterprise customers and service providers. Based upon a
series of packaged solutions, consultants from USWeb/CKS and 3Com
Consulting Services can engage with customers to deliver solutions
tailored to their specific e-business requirements. The companies are
offering customers insight into the entire commerce chain -- from the
back-end business systems all the way to the end consumer.
Centers of Excellence
The two companies will showcase solutions based on emerging
technologies, including wireless solutions for the mobile workplace
and converged voice, video and data solutions, in USWeb/CKS Centers of
Excellence. The Centers of Excellence will be established worldwide to
act as technology development labs. The solutions will also be
showcased in the 3Com Convergence Lab at 3Com's Santa Clara
headquarters.
The alliance is a major step for 3Com's e-Networks strategy and
its expanded capabilities to deliver e-business solutions. In
November, the company outlined its strategy for building e-Networks
for e-business applications. That strategy applies the company's
strengths - delivering highly availability, anytime, anywhere access
and applications critical for economic success in the 21st Century.
Financial Details
Under the alliance, the parties intend that 3Com will fund
development work by USWeb/CKS. In addition, subject to satisfaction of
certain conditions, 3Com may purchase up to $40 million of USWeb/CKS
stock. Further, also subject to certain conditions, 3Com has the right
to acquire warrants to purchase additional shares of USWeb/CKS stock.
The warrants would be purchased at the fair market value of the
warrant rights, and would have an exercise price based on the market
value of USWeb/CKS' stock at the time of warrant issuance.
About USWeb/CKS
USWeb/CKS (Nasdaq: USWB) seeks to transform businesses in the
digital economy and create sustainable market leadership for its
clients. As the leading Internet professional services firm, USWeb/CKS
has created a new standard for success in the digital economy -
Time-to-Value. Time-to-Value means USWeb/CKS applies its extensive
insight, experience and scale to deliver breakthrough results quickly.
The Company is headquartered in San Francisco, California, with more
than 4,000 professionals in 13 countries around the world. USWeb/CKS
recently announced its intention to merge with Whittman-Hart
Corporation. Additional information about USWeb/CKS is available at
www.uswebcks.com or by calling 415/284-7070.
About 3Com Corporation
With over 300 million customer connections worldwide, 3Com
Corporation connects more people and organizations to information and
each other in more innovative, simple and reliable ways than any other
networking company. 3Com delivers e-Networking solutions through
information access products and network systems to enterprises, small
businesses, consumers, carriers and network service providers. 3Com --
More connected.(TM) For further information, visit 3Com's World Wide
Web site at www.3com.com or the press site at www.3com.com/pressbox.
Note to Editors: 3Com is a registered trademark and Palm and More
connected. are trademarks of 3Com Corporation or its subsidiaries. All
other company and product names may be trademarks of the respective
companies with which they are associated.
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