BETHESDA, Md. – AppNet Systems Inc., a provider of Internet and e-commerce services to medium- and large-size businesses, went public June 17. The company offered 6 million shares at $12 apiece, the low end of its $12 to $14 filing range.
Credit Suisse First Boston, Hambrecht & Quist, Deutsche Banc Alex. Brown, The Robertson-Humphrey Co. and Charles Schwab & Co. Inc. underwrote the initial public offering, which left 30.98 million shares outstanding.
Venture backers include GTCR Golder Rauner and Davidson Technology Investment Group. There were no selling shareholders.
AppNet provides business-to-business and business-to-consumer e-commerce solutions, such as strategic consulting, Web sire design, development, branding, media planning and buying, Internet-based application development, e-commerce systems integration and e-commerce outsourcing. The company has offices in 14 cities, including Boston, Detroit, Los Angeles, New York and Washington, D.C.
The $64.3 million AppNet earned in the offering will be used for general corporate purposes and to repay debt.
The company lost $15.3 million in 1998.
Bruce Rauner and Philip Canfield, managing principal and principal of GTCR, and Thomas Davidson, president and chief executive of Davidson Capital Group, joined the company’s board of directors in June 1998.
AppNet Systems – Selected Financial
(in thousands, except per share data)
Year ended December 31, 1998 Three months ended March 31, 1999
Revenue 17,674 19,643
Net loss -15,252 -17,381