Razorfish hooks i-Cube for services

Razorfish, which creates Web sites for online businesses, agrees to buy computer-system consultant and designer International Integration for $677 million in stock to offer more services.

Jan. 2, 2002 4:43 p.m. PT

Razorfish today said it is acquiring i-Cube, a Cambridge, Massachusetts-based provider of electronic business transformation services in a stock swap worth $677 million.

Under the terms of the agreement, i-Cube shares will be exchanged for 0.875 shares of Razorfish. The combined company, named Razorfish, will be headquartered in New York City and employ more than 1000 people in 11 cities across 7 countries, the company said.

i-Cube provides consulting services covering digital strategy, interactive design, and technology to corporations.

The transaction combines Razorfish's Digital Change Management service offering with i-Cube's consulting and integration services.

Jeff Dachis will remain CEO, president and director of Razorfish. i-Cube's CEO Michael Pehl will become chief operating officer and a director of Razorfish.

The transaction is expected to be completed during the fall of 1999 and will be accounted for as a pooling of interests. Razorfish expects the acquisition to appear in fiscal 1999 and 2000 earnings.