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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(AMENDMENT NO. 1)
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PREDICTIVE SYSTEMS, INC.
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.001 PER SHARE
(Title of Class of Securities)
74036W102
(CUSIP Number)
THOMAS J. MURPHY
C/O GENERAL ATLANTIC SERVICE CORPORATION
3 PICKWICK PLAZA
GREENWICH, CONNECTICUT 06830
TEL. NO.: (203) 629-8600
(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)
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APRIL 8, 2003
(Date of Event which Requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 1(f) or 1(g), check the following box [_].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-1(a) for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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301504106 Page 2 of 26
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
General Atlantic Partners, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY
EACH REPORTING PERSON -0-
WITH ------------------------------------------------
8 SHARED VOTING POWER
6,687,517
------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,687,517
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,687,517
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.5%
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14 TYPE OF REPORTING PERSON
OO
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301504106 Page 3 of 26
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
General Atlantic Partners 54, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY
EACH REPORTING PERSON -0-
WITH ------------------------------------------------
8 SHARED VOTING POWER
6,687,517
------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,687,517
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,687,517
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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301504106 Page 4 of 26
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
General Atlantic Partners 57, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY
EACH REPORTING PERSON -0-
WITH ------------------------------------------------
8 SHARED VOTING POWER
6,687,517
------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,687,517
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,687,517
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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301504106 Page 5 of 26
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
General Atlantic Partners 74, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY
EACH REPORTING PERSON -0-
WITH ------------------------------------------------
8 SHARED VOTING POWER
6,687,517
------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,687,517
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,687,517
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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301504106 Page 6 of 26
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
GAP Coinvestment Partners II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY
EACH REPORTING PERSON -0-
WITH ------------------------------------------------
8 SHARED VOTING POWER
6,687,517
------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,687,517
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,687,517
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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301504106 Page 7 of 26
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
GapStar, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY
EACH REPORTING PERSON -0-
WITH ------------------------------------------------
8 SHARED VOTING POWER
6,687,517
------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,687,517
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,687,517
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
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301504106 Page 8 of 26
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ITEM 1. SECURITY AND ISSUER.
This Amendment No. 1 to Schedule 13D is filed by the
undersigned to amend and supplement the Schedule 13D, dated May 17, 2001 (the
"Original 13D"), with respect to the Common Stock, par value $0.001 per share
(the "Common Stock"), of Predictive Systems, Inc., a Delaware corporation (the
"Company"). The address of the principal executive office of the Company is 19
West 44th St., New York, NY 10036.
ITEM 2. IDENTITY AND BACKGROUND.
Item 2 is hereby amended and restated in its entirety as
follows:
This statement is being filed by a group, as defined in Rule
13d-5 of the General Rules and Regulations under the Securities Exchange Act of
1934, as amended (the "Exchange Act"). The members of the group are General
Atlantic Partners, LLC, a Delaware limited liability company ("GAP"), General
Atlantic Partners 54, L.P., a Delaware limited partnership ("GAP 54"), General
Atlantic Partners 57, L.P., a Delaware limited partnership ("GAP 57"), General
Atlantic Partners 74, L.P., a Delaware limited partnership ("GAP 74"), GAP
Coinvestment Partners II, L.P., a Delaware limited partnership ("GAPCO II"), and
GapStar, LLC, a Delaware limited liability Company ("GapStar" and, collectively
with GAP, GAP 54, GAP 57, GAP 74 and GAPCO II, the "Reporting Persons"). The
Reporting Persons are located at 3 Pickwick Plaza, Greenwich, Connecticut 06830.
Each of the Reporting Persons is engaged in acquiring, holding and disposing of
interests in various companies for investment purposes.
The general partner of each of GAP 54, GAP 57 and GAP 74 is
GAP. GAP is also the sole member of GapStar. The managing members of GAP are
Steven A. Denning, Peter L. Bloom, Peter Currie, Mark F. Dzialga, Erik Engstrom,
Klaus Esser, William E. Ford, William O. Grabe, David C. Hodgson, Braden R.
Kelly, Rene M. Kern,
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301504106 Page 9 of 26
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William J. Lansing, Matthew Nimetz, Clifton S. Robbins, Franchon M. Smithson,
Tom C. Tinsley, Florian P. Wendelstadt and John Wong (collectively, the GAP
Managing Members"). The GAP Managing Members (other than Mr. Esser) are also the
general partners of GAPCO II. Mr. Bloom serves on the Board of Directors of the
Company.
The business address of each of the GAP Managing Members
(other than Messrs. Esser, Currie, Kelly, Lansing, Tinsley, Wendelstadt and
Wong) is 3 Pickwick Plaza, Greenwich, Connecticut 06830. The business address of
Mr. Esser is Koenigsallee 62, 40212 Duesseldorf, Germany. The business address
of Mr. Wendelstadt is 83 Pall Mall, Sixth Floor, London SW1Y 5ES, United
Kingdom. The business address of Messrs. Currie, Kelly and Lansing is 228
Hamilton Avenue, Palo Alto, California 94301. The business address of Mr.
Tinsley is 11600 Sunrise Valley Drive, Reston, Virginia 20191. The business
address of Mr. Wong is 24 Raffles Place, 29-04 Clifford Center, Singapore 04862.
Messrs. Esser, Kern and Wendelstadt are citizens of Germany; Mr. Engstrom is a
citizen of Sweden; and Mr. Wong is a citizen of Singapore. The present principal
occupation or employment of each of the GAP Managing Members is as a managing
member of GAP. Each of the GAP Managing Members, other than Messrs. Engstrom,
Esser, Kern, Wendelstadt and Wong, is a citizen of the United States.
None of the Reporting Persons and none of the above
individuals has, during the last five years, been (i) convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or (ii) a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction or subject to any judgment, decree or final order finding any
violation of federal or state securities laws or enjoining future violations of,
or prohibiting or mandating activities subject to, such laws.
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301504106 Page 10 of 26
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ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Unchanged.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 is hereby amended and supplemented by the addition of
the following:
This statement is being filed as a result of GAP 54, GAP 57,
GAP 74, GAPCO II and GapStar (the "GA Signatories") entering into a Voting
Agreement, dated April 8, 2003 (the "Voting Agreement"), with International
Network Services, Inc., a Delaware corporation ("INS"), pursuant to which the GA
Signatories agreed, among other things, to vote (and grant a proxy to the
directors of INS to vote) all of the shares of Common Stock registered in the
name of or beneficially owned by the GA Signatories (i) in favor of the approval
of the Merger (as defined in Item 6 below) and the approval and adoption of the
Merger Agreement (as defined in Item 6 below) and the transactions contemplated
thereby and (ii) against any proposal made in opposition to, or in competition
with, the Merger and the transactions contemplated by the Merger Agreement. The
Voting Agreement and Merger Agreement are described in greater detail in Item 6
below.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 is hereby amended and restated in its entirety as
follows:
(a) As of the date hereof, GAP, GAP 54, GAP 57, GAP 74,
GAPCO II and GapStar each own of record no shares of Common Stock, 4,559,458
shares of Common Stock, 349,918 shares of Common Stock, 628,054 shares of Common
Stock, 1,102,399 shares of Common Stock and 47,688 shares of Common Stock,
respectively, or 0%, 12.0%, 0.9%, 1.6%, 2.9% and 0.1%, respectively, of the
Company's issued and outstanding shares of Common Stock.
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301504106 Page 11 of 26
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By virtue of the fact that (i) the GAP Managing Members (other
than Mr. Esser) are also the general partners authorized and empowered to vote
and dispose of the securities held by GAPCO II and (ii) GAP is the general
partner of GAP 54, GAP 57 and GAP 74 and the sole member of GapStar, the
Reporting Persons may be deemed to share voting power and the power to direct
the disposition of the shares of Common Stock, which each owns of record.
Accordingly, as of the date hereof, each of the Reporting Persons may be deemed
to own beneficially an aggregate of 6,687,517 shares of Common Stock, or 17.5%
of the Company's issued and outstanding shares of Common Stock.
(b) Each of the Reporting Persons has the shared power to
direct the vote and the shared power to direct the disposition of the 6,687,517
shares of Common Stock that may be deemed to be owned beneficially by each of
them.
(c) Except as set forth herein, to the knowledge of the
Reporting Persons with respect to the persons named in response to paragraph
(a), none of the persons named in response to paragraph (a) has effected any
transactions in shares of Common Stock during the past 60 days.
(d) No person other than the persons listed is known to
have the right to receive or the power to direct the receipt of dividends from,
or the proceeds from the sale of, any securities owned by any member of the
group.
(e) Not Applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIP WITH RESPECT TO
THE ISSUER.
Item 6 is hereby amended and supplemented by the addition of
the following:
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301504106 Page 12 of 26
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The Company entered into an Agreement and Plan of Merger,
dated April 8, 2003 (the "Merger Agreement"), with INS and Mid-West Acquisition
Corp, a wholly-owned subsidiary of INS ("Merger Sub"), pursuant to which Merger
Sub will be, subject to the closing conditions set forth in the Merger
Agreement, merged with and into the Company (the "Merger"), with all of the
outstanding capital stock of the Company being converted into the right to
receive cash consideration, as set forth in the Merger Agreement. Pursuant to
the Voting Agreement, the GA Signatories have agreed, among other things, to
vote (and grant a proxy to the directors of Parent to vote) all of the shares of
Common Stock registered in the name of or beneficially owned by the GA
Signatories (i) in favor of the approval of the Merger and the approval and
adoption of the Merger Agreement and the transactions contemplated thereby and
(ii) against any proposal made in opposition to, or in competition with, the
Merger and the transactions contemplated by the Merger Agreement. In addition,
through and until the consummation of the Merger or the termination of the
Merger Agreement in accordance with its terms, the GA Signatories have agreed
not to (1) transfer their shares of Common Stock and (2) except as permitted by
the Merger Agreement, solicit alternative acquisition proposals for the Company.
The foregoing summaries of the Merger Agreement and the Voting
Agreement are qualified in their entirety by reference to Exhibits 3 and 4,
respectively, which are incorporated herein by reference.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS.
Exhibit 1: Power of Attorney dated December 20, 2002
appointing Thomas J. Murphy Attorney-In
-Fact for GAP.
Exhibit 2: Power of Attorney dated December 20, 2002
appointing Thomas J. Murphy Attorney-In-Fact
for GAPCO II.
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301504106 Page 13 of 26
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Exhibit 3: Agreement and Plan of Merger, dated April 8,
2003, by and among the Company, INS and
Merger Sub (incorporated by reference to the
company's Current Report on Form 8-K filed
on April 9, 2003).
Exhibit 4: Form of Voting Agreement, dated April 8,
2003, by and among INS and the GA
Signatories.
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301504106 Page 14 of 26
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated as of April 10, 2003.
GENERAL ATLANTIC PARTNERS, LLC
By: /s/ Thomas J. Murphy
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Name: Thomas J. Murphy
Title: Attorney-In-Fact
GENERAL ATLANTIC PARTNERS 54, L.P.
By: General Atlantic Partners, LLC,
Its general partner
By: /s/ Thomas J. Murphy
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Name: Thomas J. Murphy
Title: Attorney-In-Fact
GENERAL ATLANTIC PARTNERS 57, L.P.
By: General Atlantic Partners, LLC,
Its general partner
By: /s/ Thomas J. Murphy
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Name: Thomas J. Murphy
Title: Attorney-In-Fact
GENERAL ATLANTIC PARTNERS 74, L.P.
By: General Atlantic Partners, LLC,
Its general partner
By: /s/ Thomas J. Murphy
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Name: Thomas J. Murphy
Title: Attorney-In-Fact
GAP COINVESTMENT PARTNERS II, L.P.
By: /s/ Thomas J. Murphy
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Name: Thomas J. Murphy
Title: Attorney-In-Fact
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301504106 Page 15 of 26
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GAPSTAR, LLC
By: General Atlantic Partners, LLC,
Its sole member
By: /s/ Thomas J. Murphy
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Name: Thomas J. Murphy
Title: Attorney-In-Fact