Divine interVentures Inc. (NasdaqNM:DVIN) Chief Executive Andrew "Flip" Filipowski told analysts today the company is abandoning its strategy of trying to build an Internet holding company and instead will become a business software provider for the enterprise information portal market, with a new name, re-christened as Divine, Inc.

"Until today we were perceived to be an incubator," Filipowski said at a technology conference here sponsored by Robertson Stephens. "Divine will be perceived by you folks as a software company."

The shift will be the Chicago-based company's latest make-over.

Earlier this month, divine interVentures cut the number of seats on its board to 11 from 38. Since going public in mid-2000, the company's stock has nosedived.

The company, which owns stakes in 52 B2B Internet firms, has styled itself as an "Internet Zaibatsu," a concept borrowed from Japanese business structure to form a network of companies with shared interests. Fifteen of the 52 companies are located in divine interVentures facilities to promote cross-selling and shared marketing and business support.

Now, according to Filipowski, Divine Inc., which will operate divine interVentures as a wholly owned unit, will seek to develop corporate software markets for enterprise portals.

To that end, Divine also announced today a strategic alliance with electronic-business software developer Computer Associates (NYSE:CA) designed to capitalize on the fast growing enterprise information portal (EIP) market by leveraging CA's Jasmineii Portal technology and divine's acquisition of information portal solutions company SageMaker, Inc., an all-stock deal, valued at about $16.5 million, expected to be completed by late February.

According to Michael Cullinane, divine interVentures' chief financial officer, the company has money in the bank to pursue its strategy.

"We've never been close to running out of money," Cullinane said. "At the end of the year we had close to $240 million."

Cullinane told analysts that the company expects revenues of $100 million in 2001 and over $200 million in 2002.

"We would expect to turn profitable in mid-2002," Cullinane also said.