Internet consultancy MarchFIRST, Chicago, won a needed $150 million cash infusion from equity firm Francisco Partners. In turn, Francisco Partners will receive MarchFIRST preferred stock. MarchFIRST said two weeks ago it expects to miss fourth-quarter profit targets; it recently disclosed in a filing with the Securities and Exchange Commission that it needed to secure about $100 million in financing until early 2001 to remain afloat. Under the terms of the agreement, Francisco Partners will buy a total of 150,000 convertible, preferred MarchFIRST shares for $1,000 each. About 63,053 shares will be convertible at any time into shares of MarchFIRST common stock at a price of $2 per share.
Copyright December 2000, Crain Communications Inc.