Feeds

US Web/CKS buy makes $14bn monster

You can make money designing websites

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

See, there's still money in designing websites. US Web/CKS Corp is selling itself to Whittman-Hart, a Chicago-based e-business consultancy, for $5.88bn, a hefty 35 per cent premium on Friday's closing price.

The merged entity will command a market cap of $14bn and will employ more than 8000 professionals in 70+ offices in 13 countries worldwide. It's a stock-only transaction, of course. But that doesn't make it any less real - without the support of the investment community, deals like this would not be a goer.

Designing websites and making them work is essentially what US Web/CKS does. It wraps around this a clutch of marketing and consultancy services. So that makes it a multi-billion dollar internet play. About Whittman-Hart we know next to nothing, except from what we gleaned from its Web site.

But how can two companies, collectively turning over about $600m a year, be worth $14bn? You've heard the net 'shovel makers make more money than the dotcom companies' argument: this is used to justify sky-high valuations for the likes of Cisco and Autonomy Corporation.

However, US Web/CKS and - we think - Whittman-Hart, don't fall so neatly into this category. They are professional services firms - with an internet (or integrated digital delivery model) spin, but labour-intensive professional services firms, nonetheless. ®

Website security in corporate America

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.