Silverline Web Solutions CEO leaves the company amid investigation

Silverline, a global provider of IT services, is shutting down its operations and closing its doors as it looks to reduce costs amid a probe into possible illegal business practices, people familiar with the matter said.

Silverline, based in Singapore, had about 1,500 employees and was the third-largest U.S. IT services provider, according to its website.

It was spun off from Gartner last year.

The company said it would continue to provide IT services and services related to enterprise applications and technology, but it would not be able to provide any IT services for clients other than the enterprise or commercial customers.

Investors reacted with disappointment to the news.

“It is with a heavy heart that we have to report the news that Silverline has closed its doors, in part because of its inability to comply with the law and also because of the ongoing investigation,” said Chris Wilson, chief executive of the investment research firm Blackstone Group.

It is likely to be the last company Silverline will be involved in, Mr. Wilson said.

Silverline was spun out of Gartners last year and has about 400 employees.

Its shares closed down 0.4 percent at $37.96 in New York.

Mr. Wilson’s company said that while Silverline had an aggressive strategy and an established track record, it had recently struggled to grow its revenues and needed to cut costs.

Goldman Sachs declined to comment.

At the time of its closure, Silverline said it had $3.6 billion in annual revenue and had more than 300,000 employees worldwide.

It also reported that it was working on closing a $250 million fund that would help it provide additional cash for its customers.

It said the fund was a new venture.

Shares of Silverline closed down 4.9 percent to $36.50 in New England.

Write to Eric Lichtblau at [email protected] and Peter Rucker at [email protected]