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TELETECH CLOSES ACQUISITION OF NEWGEN RESULTS CORPORATION; TELETECH ACQUIRES B2B
ENTERPRISE CHANNEL MANAGEMENT SERVICES PROVIDER
DENVER, Dec. 20 /PRNewswire/ -- TeleTech Holdings, Inc., (Nasdaq: TTEC) one
of the largest and fastest growing providers of customer management and B2B
infrastructure services, today announced it has closed its acquisition of Newgen
Results Corporation (Nasdaq: NWGN) for approximately $160 million in a
stock-for-stock exchange accounted for as a pooling of interests. The
acquisition strengthens TeleTech's existing database management capabilities and
further enhances TeleTech's end-to-end CRM solution with the addition of an
enterprise channel management offering.
Newgen is a leading provider of Internet-based solutions and B2B enterprise
channel management services, including customized database management,
personalized direct marketing and other CRM-related services, targeted to
automobile dealers and manufacturers nationwide. Newgen's highly scalable,
database-driven solution strengthens and broadens relationships with its
clients' channel partners and resellers. Newgen's solutions can be leveraged to
increase effectiveness throughout each link in the distribution chain, including
distributors, dealers, retailers, original equipment manufacturers, resellers,
service centers and contractors.
TeleTech plans to leverage Newgen's Internet-based CRM applications,
including its expertise in one-to-one and direct marketing, into TeleTech's
specialized solutions for its key industry segments -- such as financial
services, broadband, transportation, technology and healthcare. TeleTech also
plans to leverage its global footprint and longstanding relationships with
Global 1000 clients to expand Newgen services on a worldwide basis.
"Our business, from the very start, has been about embracing the customers
of our Global 1000 clients," said Scott Thompson, TeleTech chief executive
officer and president. "Newgen's leading database management and one-to-one
marketing capabilities present an opportunity for us to broaden our
relationships with our clients and build increased levels of customer loyalty.
Additionally, Newgen's electronic channel management capabilities will enable us
to expand our vertical market focus to industries with extensive dealer
relationships, such as pharmaceuticals, office automation and financial
services."
TERMS OF THE DEAL
Under the terms of the agreement, TeleTech acquired Newgen for stock in a
tax free exchange valued at approximately $160 million. Each share of Newgen
will be exchanged for .8 shares of TeleTech stock. The transaction, which was
unanimously approved by the Board of Directors of each company, today received
final approval from Newgen shareholders. In the upcoming weeks, shareholders
will receive instructions regarding the conversion of their Newgen shares to
TeleTech shares.
Jerry Benowitz, CEO, and Sam Simkin, COO, will continue their roles at
Newgen. Jerry, Sam and their management team will operate Newgen as an
independent entity within TeleTech Companies Group. Newgen management will
report into Michael Foss, president, TeleTech Companies Group.
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"The core competencies of TeleTech and Newgen align well with each other,
which leads to a strong shared vision for the future of CRM," continued
Thompson. "We are confident that Newgen's strong operating performance combined
with the revenue opportunities within TeleTech's key industry segments and
international markets will make it a strong contributor to TeleTech's future
growth."
TELETECH PROFILE
Founded in 1982, TeleTech is the leading provider of integrated
eCommerce-enabling customer relationship management solutions (eCRM) for global
organizations predominantly in the telecommunications, financial services,
technology, government and transportation industries. TeleTech has operations in
eleven countries which include Argentina, Australia, Brazil, Canada, China,
Mexico, New Zealand, Singapore, Spain, the U.K. and the U.S. TeleTech's eCRM
capabilities, including B2B electronic channel management and database
management, help companies inform, acquire, service, grow and retain their
customers throughout the entire relationship lifecycle. Through 45 customer
interaction centers in the Americas, Europe and Asia, TeleTech couples
high-velocity e-infrastructure service deployment with premier quality
e-customer relationship management to assure our clients unparalleled success.
Information regarding TeleTech Holdings can be found on the Worldwide Web at
http://www.teletech.com.
FORWARD LOOKING STATEMENTS
All statements not based on historical fact are forward-looking statements
that involve substantial risks and uncertainties. In accordance with the Private
Securities Litigation Reform Act of 1995, following are important factors that
could cause TeleTech's actual results to differ materially from those expressed
or implied by such forward-looking statements: TeleTech's ability to
successfully integrate companies it acquires, including Newgen, and to leverage
those companies' products and services; lower than anticipated customer
interaction center capacity utilization; the loss or delay in implementation of
a customer management program; TeleTech's ability to build- out facilities in a
timely and economic manner; greater than anticipated competition from new
entrants into the customer care market, causing increased price competition or
loss of clients; the loss of one or more significant clients; start-up costs
associated with new business opportunities and ventures; TeleTech's ability to
predict the potential volume or profitability of any future technology or
consulting sales; TeleTech's agreements with clients may be canceled on
relatively short notice; and TeleTech's ability to generate a specific level of
revenue is dependent upon customer interest in and use of the Company's clients'
products and services. Readers are encouraged to review TeleTech's 1999 Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, for first, second and third
quarters 2000, and other publicly filed documents which describe other important
factors that may impact TeleTech's business, results of operations and financial
condition. TeleTech undertakes no obligation to update its forward looking
statements after the date of this release.
SOURCE TeleTech Holdings, Inc.
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Web site: http://www.teletech.com
Company News On-Call: http://www.prnewswire.com/comp/107907.html or
fax, 800-758-5804, ext. 107907
CONTACT: Emily Eikelberner, Investor Relations, 303-894-7360,
[email protected], or Claire Maledon, Media Relations, 720-947-6182,
[email protected], both of TeleTech Holdings, Inc.
