AT&T closes USi deal

AT&T completed its acquisition of application service provider USinternetworking today, one month after announcing its plans to acquire USi for $300 million in cash and debt.

AT&T says USi “complements [the carrier’s] existing managed service capabilities and paves the way for the company to drive more deeply into the applications management space,” in a printed statement.

Although AT&T has offered collocation and hosting services for application service providers and software-as-a-service suppliers, it has not offered managed application services directly to business customers.

USi already has a respectable customer base with 150 business customers, including GMAC, Michelin, Sunoco and Yankee Candle. The company’s revenue totals about $100 million; it employs 700 people and has two data centers.

AT&T says it completed the acquisition after it received all necessary approvals.

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AT&T Completes Acquisition of USi

AT&T buys into the ASP market by acquiring USi


Out with ASPs, in with Software as a Service suppliers


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