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GLASTONBURY, Conn. — Some private firms spend years positioning themselves to go public. Open Solutions, Inc. has been there, done that and is now reversing course. Open Solutions went public back in November of 2003. It appeared to be a terrific move for the firm as not only did its stock price surge from its initial $17 offering, it used the capital infusion to make a number of strategic acquisitions. But last week Open Solutions announced that it is returning to a private company structure. It is being purchased by private equity firms The Carlyle Group and Providence Equity Partners for $1.3 billion. Leadership cited a desire to move away from the stringent reporting requirements of a public company and to make R&D decisions based on long-term objectives, not how they might negatively affect the latest earnings report. In essence, said Open Solutions Chairman and CEO Louis Hernandez, the company wants to keep its entrepreneurial spirit and do what’s best for clients. “We get the benefit of no longer having to worry about quarterly results. We can focus on long-term investment with investors who have very deep pockets and are interested in Open Solutions becoming a standard in the world,” said Hernandez.

Hernandez said the company has doubled its business since going public and its new contracts are up 55% in the most recent quarter. Its revenues have risen dramatically since 1999 when Hernandez came aboard. At that time, its revenues were roughly $160 million a year and today they are close to $450 million.

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