Thread regarding Sungard Availability Services layoffs

Stern and USInternetworking. Anyone see a pattern here? Deja Vu

Some interesting "deju vu" articles. History is repeating itself. Even down to the $100M cash investment by Bain.

https://www.crn.com/news/channel-programs/18817748/usinternetworking-files-for-bankruptcy.htm

"Last October, Bain Capital Partners signed a letter of intent to invest $100 million in USi. To receive the money, USi and Bain needed to come to a mutually agreeable restructuring of the company's debt, and Bain would own all of USi's equity." "USi also said it plans to emerge from bankruptcy in the spring. ..."Bain follows a line of big-name investors to have attempted to bail out USi in the past. The ASP's capital intensive infrastructure buildout plan led to mounting debt and losses."

https://books.google.com/books?id=NRkEAAAAMBAJ&pg=PA48&lpg=PA48&dq=usi+internetworking+stern&source=bl&ots=-rQOoPwA9I&sig=ACfU3U2UWfr0zQsTyFIhTjDFsXDHCMpi7g&hl=en&sa=X&ved=2ahUKEwjo38_MltfhAhUECawKHRp-CMUQ6AEwDXoECAgQAQ#v=onepage&q=usi%20internetworking%20stern&f=false

"USi will emerge from the reorganization plan a much stronger company" - Andrew Stern - 1/14/2002 - Networking World . Timeline: Jan 2001 - Layoff 150. April 2001 - Layoff 250 more. September 2001 - 225 more gone. October 2001 - Gets $100M from Bain to keep operations alive.

https://www.nytimes.com/2001/10/12/business/technology-briefing-software-leasing-concern-gets-100-million-infusion.html

OCT. 12, 2001 - USInternetworking, a company that leases software over the Internet, said that it would receive a $100 million equity investment from Bain Capital. Shares in USinternetworking, a software company in Annapolis, Md., rose sharply on the news, closing at 34 cents, up 8 cents, or 31 percent. Like many software companies, USinternetworking, also known as USi, has had a difficult year, complete with layoffs, a plummeting share price and lowered expectations. The company's management says its losses are being contained. Andrew A. Stern, above, chief executive of USi, suggested that the investment by Bain, a Boston-based investment firm, would assure clients that the company was still viable. Andrew Zipern (NYT)

https://www.cnet.com/news/usi-finishes-restructuring-will-merge/

https://www.computerworld.com/article/2586088/q-a--usi-s-stern-still-an-asp-booster.html

https://www.baltimoresun.com/news/bs-xpm-2002-05-22-0205220043-story.html

https://www.washingtonpost.com/archive/business/2002/05/22/usinternetworking-out-of-bankruptcy/3cabf60a-3d0a-43e7-bc35-0cccecfab422/?utm_term=.463ee7962a48

https://www.baltimoresun.com/news/bs-xpm-2000-07-25-0007250062-story.html

https://www.bizjournals.com/baltimore/stories/2001/06/11/story3.html

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| 1751 views | | 4 replies (last April 18, 2019) | Reply
Post ID: @OP+YC2LUSn

4 replies (most recent on top)

It comes down to who you know, not what you've done

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Post ID: @1rzv+YC2LUSn

Stern is pathetic. How the hell was he hired at SAS after that fiasco? And how did he stick around for 9 years? What a mess he is. He needs to go.

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Post ID: @1khu+YC2LUSn

True... but, while sgas and usi are “pioneers”, in their segment- usi was on the bleeding edge of new technology with upside potential; sgas is just bleeding.... sgas new play is managed services, the dark reality is sgas no longer has the capability to handle this market due to aggressive outsourcing to India, so sgas out-tasks to companies like ML.... where is the value add with that strategy...?? I wish all sgas employees well and hope for the best outcome - unfortunately, hope is a really poor strategy....

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Post ID: @hxf+YC2LUSn

So the company continued for 4 years and then it was bought by AT&T. It didn’t dissolved within the year like everyone here seems to think that will happen to SAS. And on top of that, that all occurred during the dotcom bubble burst. He

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Post ID: @ehv+YC2LUSn

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