Scient

Scient was an Internet consulting and digital-services company founded in San Francisco in 1997 by Eric Greenberg, who had previously founded the consulting firm Viant. The company emerged during the rapid commercial development of the Internet and built a business around advising organizations on digital strategy, online commerce, Internet infrastructure, and the creation of Web-based customer and business systems. Its growth reflected the strong demand for Internet expertise during the late-1990s technology boom. The company recruited Robert M. Howe, a former head of IBM's global consulting operation, as president and chief executive officer. Greenberg remained chairman and founder. Scient went public in May 1999, at a time when investors were placing high valuations on Internet consultancies and other technology-service companies. It subsequently expanded its workforce and client activity substantially. At its peak in the fall of 2000, the company reportedly had approximately 1,180 employees and quarterly revenue of about $100 million. Its stock price reached $133 during that period, according to the company's Wikipedia entry and the cited historical account. Scient's business model depended heavily on continued corporate spending on Internet transformation projects. When the dot-com bubble deflated, demand and investor confidence weakened sharply. The company's quarterly revenue had fallen to approximately $11 million by August 2001, when Scient acquired rival Internet consultancy iXL. The acquisition occurred during a period of severe contraction in the digital-consulting market and did not prevent Scient's subsequent financial deterioration. In July 2002, Scient filed for bankruptcy. Its assets and business were acquired by SBI and Company, which later operated as SBI Group. Scient subsequently became part of a broader sequence of ownership changes involving Avenue A and Razorfish. SBI Group sold Scient together with other Avenue A/Razorfish-related businesses to aQuantive. Microsoft acquired aQuantive in August 2007 and placed the acquired operations within its Advertiser and Publisher Solutions group. Microsoft later sold the business to Publicis Groupe on August 9, 2009, in a transaction reported at $530 million in cash and stock. Scient therefore ceased to exist as an independent operating company, while elements of its capabilities and personnel continued through successor organizations in digital advertising and marketing services. Scient is historically associated with the rise and collapse of the first-generation Internet-consulting sector. Its trajectory—from rapid expansion and a high public-market valuation to falling revenue, a distressed acquisition, and bankruptcy—illustrates the volatility of professional-services companies whose growth was closely tied to the dot-com investment cycle.

Scient was established in San Francisco in 1997 by Eric Greenberg, an entrepreneur who had previously founded the Internet consultancy Viant. The company entered a market that was being transformed by the growth of commercial Internet use. Businesses were beginning to invest in websites, online commerce, digital customer experiences, and new technology infrastructures, creating demand for consultants capable of combining business strategy with software and systems implementation. Scient developed as a full-service Internet consultancy. Its work centered on helping clients plan and build online businesses and technology environments rather than selling a conventional packaged consumer product. This model placed the company within the early digital-agency and Internet-services sector, where revenue was generated primarily through consulting engagements, design and development work, and technology implementation. Robert M. Howe, formerly associated with IBM's global consulting business, became Scient's president and chief executive officer. Greenberg continued as chairman and founder. The combination of a founder associated with the Internet-consulting industry and an executive with experience in large-scale corporate consulting supported Scient's effort to serve major organizations while expanding quickly. Scient became a public company in May 1999. The offering took place during the dot-com boom, when Internet consultancies and technology firms were receiving substantial investor attention. The company grew rapidly as corporations increased their spending on digital initiatives. By fall 2000, its reported quarterly revenue had reached approximately $100 million, its workforce was around 1,180 employees, and its stock price had reached $133. These indicators reflected both the scale Scient achieved and the unusually favorable market conditions surrounding Internet businesses at the time. The business environment changed dramatically after the dot-com bubble began to deflate. Clients reduced or postponed Internet projects, while public-market valuations for technology and digital-services companies fell. Scient's reported quarterly revenue declined to roughly $11 million by August 2001. In that difficult environment, Scient acquired rival consultancy iXL. The transaction expanded the company's corporate history but also occurred when the sector was already under significant financial pressure. Scient was unable to recover and filed for bankruptcy in July 2002. SBI and Company acquired the company, later operating under the SBI Group name. Scient was subsequently linked with a broader collection of digital-marketing and advertising businesses associated with Avenue A and Razorfish. SBI Group sold Scient along with other related businesses to aQuantive. Microsoft acquired aQuantive in August 2007 and incorporated the acquired activities into its newly created Advertiser and Publisher Solutions group. On August 9, 2009, Microsoft sold the firm to Publicis Groupe for a reported $530 million in cash and stock. By this point, Scient was no longer an independent company. Its organizational legacy was absorbed into successor businesses operating across digital advertising, marketing technology, and online services. Scient's history is consequently significant less as a continuing brand than as an example of the first wave of Internet consultancies. Its expansion, public-market success, acquisition of a rival during the downturn, bankruptcy, and later absorption into successive corporate owners trace the broader economic cycle of the dot-com era.

• 2009

  Sale to Publicis Groupe

  [1]Scienten.wikipedia.org

  Microsoft sold the firm to Publicis Groupe on August 9, 2009, for a reported $530 million in cash and stock.

• 2007

  aQuantive is acquired by Microsoft

  [1]Scienten.wikipedia.org

  After Scient became part of the aQuantive-related group, Microsoft acquired aQuantive and placed the operations within its Advertiser and Publisher Solutions group.

• 2002

  Bankruptcy and acquisition by SBI

  [1]Scienten.wikipedia.org

  Scient filed for bankruptcy in July and was acquired by SBI and Company, later known as SBI Group.

• 2001

  Acquisition of iXL

  [1]Scienten.wikipedia.org

  Scient acquired rival Internet consultancy iXL in August, while its quarterly revenue had fallen to approximately $11 million.

• 2000

  Peak operating scale

  [1]Scienten.wikipedia.org

  In fall 2000, Scient reportedly reached approximately 1,180 employees and quarterly revenue of about $100 million.

• 1999

  Initial public offering

  [1]Scienten.wikipedia.org

  Scient completed its IPO in May 1999 during the height of investor enthusiasm for Internet companies.

• 1997

  Scient is founded in San Francisco

  [1]Scienten.wikipedia.org

  Eric Greenberg founded Scient as an Internet consulting company.

A large, growth-oriented Internet consultancy serving organizations seeking digital strategy, online commerce capabilities, and Web technology implementation during the first commercial Internet boom.

• Professional services · 1997

  Internet consulting

  Scient's core offering was consulting for organizations developing Internet-based businesses. Its work combined business and digital strategy with advice on technology, online operations, and the organizational changes required to support Web-based services.

• Digital commerce services

  E-commerce and Web business solutions

  The company helped clients establish online commerce and customer-facing digital capabilities. These engagements could include planning online business models, designing Web experiences, and implementing the technical systems needed to operate them.

• Technology services

  Web application and technology implementation

  Scient provided development and implementation work for Internet applications and supporting infrastructures. Rather than marketing a single standardized software product, it delivered project-based technical services tailored to client requirements.

• 2001

  Acquire iXL during the consulting-market downturnM&A

  Background

  Scient pursued the acquisition of rival Internet consultancy iXL in August 2001, when the collapse of the dot-com boom was reducing demand and weakening revenue across the sector.

  Action taken

  Scient acquired iXL and combined the businesses.

  Aftermath

  The acquisition did not prevent Scient from filing for bankruptcy in July 2002.

  Quarterly revenue. $100 million → $11 million (Fall 2000 to August 2001)

  Source

• 2009

  Microsoft sells aQuantive to Publicis Groupe[1]Scienten.wikipedia.org

  M&A

  Microsoft sold aQuantive and related operations to Publicis Groupe on August 9, 2009, in a transaction reported at $530 million in cash and stock.

• 2002

  Scient files for bankruptcy[1]Scienten.wikipedia.org

  Bankruptcy

  Scient filed for bankruptcy in July 2002 after its quarterly revenue had fallen to approximately $11 million.

• 2001

  Scient acquires iXL[1]Scienten.wikipedia.org

  M&A

  Scient acquired rival Internet consultancy iXL in August 2001, as the digital-consulting market was already experiencing a sharp downturn.

• 2000

  Scient reaches peak scale during the dot-com boom[1]Scienten.wikipedia.org

  Other

  By fall 2000, Scient reportedly had approximately 1,180 employees, quarterly revenue of about $100 million, and a stock price that reached $133.

• 1999

  Scient completes initial public offering[1]Scienten.wikipedia.org

  Other

  Scient went public in May 1999 while Eric Greenberg remained chairman and founder and Robert M. Howe served as president and chief executive officer.

1. 1Scienten.wikipedia.org