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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Filed Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) FEBRUARY 22, 2000
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BILLING CONCEPTS CORP.
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(Exact name of registrant as specified in its charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
0-28536 74-278195
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(Commission File Number) (IRS Employer Identification No.)
7411 JOHN SMITH DRIVE, SUITE 200, SAN ANTONIO, TEXAS 78229
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(Address of Principal Executive Offices) (Zip Code)
(210) 949-7000
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(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. OTHER EVENTS.
On February 22, 2000, Billing Concepts Corp. issued a press release
announcing it has increased its investment in Princeton eCom Corporation to
approximately 51% from 24%. The press release is attached hereto as Exhibit 99.1
and incorporated herein by reference. The foregoing description is qualified by
reference to such exhibit.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibit 99.1 Press Release dated February 22, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BILLING CONCEPTS CORP.
By /s/ Michael T. Hynes
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Michael T. Hynes
Vice President, Investor Relations and Treasury
DATE: February 24, 2000
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EXHIBIT 99.1
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NEWS RELEASE
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FOR INFORMATION CONTACT:
BILLING CONCEPTS CORP.
Michael T. Hynes, Vice President, Investor Relations and Treasury
210.949.7030
[email protected]
David P. Tusa, Senior Vice President and Chief Financial Officer
210.949.4010
[email protected]
www.billingconcepts.com
PRINCETON ECOM CORPORATION
Marcie Berg-Katcher, Director of Corporate Communications
609.606.3104
[email protected]
Chris Sugden, Senior Vice President and Chief Financial Officer
609.606.3550
[email protected]
www.princetonecom.com
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FEBRUARY 22, 2000
BILLING CONCEPTS ANNOUNCES ADDITIONAL
$33.5 MILLION EQUITY INVESTMENT IN PRINCETON ECOM
SAN ANTONIO, TX...Billing Concepts Corp. (NASDAQ: BILL) announced today the
execution of a definitive Stock Purchase Agreement to purchase an additional
equity investment of $33.5 million in privately-held Princeton eCom Corporation,
increasing its ownership stake to approximately 51% from 24%. The investment is
comprised of $27 million of Princeton eCom's Convertible Preferred Stock and
$6.5 million of Princeton eCom's Common Stock purchased from a certain
individual. Under the Agreement, Billing Concepts Corp. has the right to sell a
portion of its holdings to several strategic investors, which potentially could
enhance Princeton eCom's billing business. Billing Concepts Corp. provided
Princeton eCom with its initial $10 million equity financing in September 1998.
The Agreement is subject to certain contingencies, including completion of due
diligence of regulatory matters and such regulatory approvals as may be
necessary.
Princeton eCom is a Princeton, N.J.-based, leading application service provider
of electronic bill presentment and payment services (EBPP) via the Internet and
telephone. The new funding will enable Princeton eCom to accelerate its existing
business-to-business initiatives, expand its infrastructure and increase its
staffing levels to meet the increasing sales demand for its
7411 John Smith Drive, Suite 200 - San Antonio, Texas 78229
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integrated online billing and payment solutions. Princeton eCom currently
provides EBPP services to over 30 major online billers, including Bell
Atlantic Mobile, Cellular One, Adelphia Cable and Cinergy Corp. Princeton
eCom's electronic billing and payment solutions are used by more than 600 of
the largest companies in the United States.
Regarding the announcement, Parris H. Holmes, Jr., Chairman and Chief Executive
Officer of Billing Concepts, stated, "We began our relationship with Princeton
eCom in September of 1998 through our initial $10 million equity investment. We
are very impressed with the ability that the Princeton eCom management has shown
to successfully execute its business plan. In a relatively short period of time,
Princeton eCom has become a leader in the electronic bill presentment and
payment industry, including being the first company to present bills on-line.
This funding will allow Princeton eCom to expand its infrastructure and increase
staffing levels to meet the increasing sales levels."
Donald C. Licciardello, Chairman and Chief Executive Officer of Princeton eCom,
commented, "Electronic bill presentment and payment is the next big killer
application on the Internet. As one of the few organizations in the industry
with an integrated bill presentment and payment solution, we are well positioned
to take advantage of the anticipated growth. Our revenues grew more than 45% in
the most recent quarter ended December 31, 1999, compared to the third quarter
of 1999. Additionally, Princeton eCom presented bills were viewed by 50,000
customers in January 2000, which reflects our aggressive rollout and widespread
success of our bill presentment and payment solutions. We have doubled the
number of personnel, aggressively entered the business-to-business market,
successfully completed a $4 million internal systems upgrade, and moved to a new
state-of-the-art headquarters with triple the square footage of the former
facility. This latest round of financing gives us the capital necessary to
continue our rapid growth and solidify our leadership position in the
fast-growing market for online bill presentment and payment."
ABOUT BILLING CONCEPTS
Billing Concepts Corp. provides Revenue Support Systems (RSS) to communications
based businesses through a variety of delivery systems, including hosted
transaction processing, supported software, Internet and e-commerce based
solutions. The Transaction Processing Services segment provides third-party
billing clearinghouse and information management services to the communications
industry. With approximately 300 customers throughout North America, TPS, along
with the LEC Billing division, offers outsourced billing solutions for
communication service providers. Through its Aptis Software division, the
Company develops, licenses and supports billing and customer care systems for
Internet, data and network service providers, as well as integrated
communications providers (ICPs) of virtually any size. Aptis has over 125
completed U.S. installations and enterprise-wide agreements with progressive,
next generation network services providers such as WinStar Communications, Inc.,
CTC Communications and IBM Global Services. The Company's Internet division
provides Internet-based instant loan approval products to the financial services
industry. The Company is also developing a metamediary Website focused on the
credit union industry and has an equity interest in Princeton eCom Corporation.
Princeton eCom is a leading application service provider for electronic bill
presentment and payment solutions. Billing Concepts Corp., headquartered in San
Antonio, TX, maintains offices in Austin, TX, Albany, NY, Glendale, CA, and
Corpus Christi, TX. For more information, visit www.billingconcepts.com.
7411 John Smith Drive, Suite 200 - San Antonio, Texas 78229
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ABOUT PRINCETON ECOM
Princeton eCom, a privately-held, Princeton, N.J.-based company is a leading
outsourced provider in the fast-growing electronic bill presentment and payment
(EBPP) industry, which includes CheckFree and TransPoint, among others. It was
the first company to present an e-bill on the Internet and currently provides
EBPP services to over 30 major online billers including Bell Atlantic Mobile,
Cellular One, Adelphia Cable and Cinergy Corp. Its integrated electronic billing
and payment solutions are used by more than 600 of the largest companies in the
United States. The Company provides a single point of contact for the entire
EBPP solution-from integrated payment and presentment solutions to electronic
collection services. Princeton eCom offers e-bill distribution over the Internet
to biller websites, portals, interactive content sites, financial institutions,
personal financial management (PFM) software, and is the only provider to offer
a billers' consumers an integrated epayments solution via the Internet and
telephone. For more information visit www.princetonecom.com or call 800-PAYBILL.
CERTAIN STATEMENTS CONTAINED HEREIN ARE "FORWARD-LOOKING" STATEMENTS (AS SUCH
TERM IS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995).
BECAUSE SUCH STATEMENTS INCLUDE RISKS AND UNCERTAINTIES, ACTUAL RESULTS MAY
DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING
STATEMENTS. FACTORS THAT COULD CAUSE RESULTS TO DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT
LIMITED TO, THOSE DISCUSSED IN FILINGS MADE BY THE COMPANIES WITH THE SECURITIES
AND EXCHANGE COMMISSION.
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7411 John Smith Drive, Suite 200 - San Antonio, Texas 78229
