IT services company Metamor Worldwide Inc has announced that it plans to sell up to 20% of the company’s e-commerce consulting unit to the public to capitalize on the value for internet-related businesses. The so-called eBusiness unit, formerly known as Metamor Consulting Solutions, is expected to generate 1999 revenues of about $140m.The company’s board has also approved a plan to sell the company’s project support business, which booked revenues of $483m in 1998.
Both deals should be carried out before the end of the calendar year and Metamor says proceeds from the transactions will be used to reduce the company’s outstanding bank debt and provide additional capital to fund future growth. After the divestitures, Metamor claims it will be a pure-play IT services business with estimated 1999 pro forma revenues in excess of $750m. It will be comprised of five IT services business units with various target markets and an 80% interest in the eBusiness unit.
