Edgewater To Sell IT Division

A nonbinding letter of intent has been signed for Edgewater Technology Inc. of Fayetteville to sell IntelliMark, its information technology division. Edgewater Technology Inc. was formerly StaffMark Inc.

The transaction is expected to be completed in the fourth quarter of this year. After the sale, the corporation will be in a better position to move to Boston and concentrate on its e-solutions division, Edgewater Technology.

For the nine months ended Sept. 30, IntelliMark’s revenues declined 28.6 percent, to $140.1 million, and gross profit declined 34.1 percent, to $37.7 million, compared with the nine-month period a year ago.

“As a result of, among other things, continued deterioration of IntelliMark’s operating results, the company has reduced the carrying value of IntelliMark’s good will by $53.9 million in the third quarter,” Edgewater Technology Inc. said in a news release.

When StaffMark’s stock plummeted in 1998, CEO Clete Brewer blamed problems at the IntelliMark division, which is based in Dallas. StaffMark cleaned house and hired new management for IntelliMark, but the company’s stock has remained about $4 per share after peaking at $44 per share.

Edgewater Technology Inc. is in the process of selling all its divisions except Edgewater Technology.

Earlier this year, the company received $200 million by spinning off its Robert Walters financial division, $190.1 million by selling its core staffing division to Stephens Inc. of Little Rock, and $13.2 million by selling its Strategic Legal Resources division to MidMark Capital II and Edwardstone & Co.

Edgewater Technology Inc. is still trying to sell ClinForce, its clinical trials division.