SAN FRANCISCO (09/16/99) - Luminant, the Internet professional-services company formerly known as Clarant Worldwide, raised $128.8 million in its public debut today.
Shares opened at $27.63 and hit a high of $29.88, exceeding the offering price by nearly 60 percent. On Tuesday, Dallas-based Luminant sharply lowered the number of common shares in its IPO from 10.5 million to 4.7 million but raised the projected price range for the shares to $15-$17 per share from $10-11. The offering was handled by Deutsche Banc Alex. Brown, Hambrecht & Quist and SoundView Technology Group. Luminant intends to use the net proceeds from the offering to repay debt and for general corporate purposes.
Luminant's birth is further evidence that consolidation is becoming the way to compete in the interactive agency world. For the last year, Luminant has been working to integrate the eight companies that today it will acquire formally: Align Solutions, Brand Dialogue, Free Range Media, Integrated Consulting (known as I.con Interactive), Interactive8, Multimedia Resources, Potomac Partners Management Consulting and RSI (RSIS) Group. As a result of these acquisitions, Luminant will have more than 720 employees and 11 offices in the United States.
"We have a strong geographic footprint," says Jim Corey, Luminant's president and COO, who was formerly managing director of Potomac Partners.
The company's chairman, Michael H. Jordan, is a former chairman and CEO of CBS (CBS) . Gil G. Marmol, once a VP of Perot Systems (PER) and senior partner at McKinsey & Co., is serving as CEO. The management team also includes Vice Chairman Derek R. Reisfeld, who previously held posts as president of the CBS New Media Group and chairman of MarketWatch.com.
Luminant divides its business into three sectors: e-business strategy, creative services and technological implementation. Clients include AmeriTrade, CNBC, Intel (INTC) , the U.S. Postal Service and Wells Fargo Bank.