ENVOY BECOMES E-BUSINESS GIANT WITH STRATEGIC
ACQUISITION
$100 Million in Gross Margin in Sight with Purchase of Digital
Consulting Agency
Toronto, Canada. June 10th, 2000 - Geoff Genovese, President and CEO of the
Envoy Communications Group (NASDAQ:ECGI / TSE:ECG) today announced they
entered into a letter of intent to acquire Sage Information Consultants
Inc., one of North America's leading technology solution providers. Sage is
being acquired as part of Envoy's aggressive growth strategy in a deal worth
up to $35 million (CDN). The purchase drives Envoy's 12-month gross margin
forecast to almost $70 million and makes it one of North America's largest,
full service e-business companies. The purchase is subject to regulatory
approval. A portion of the purchase price will be satisfied by the issuance
of common shares of Envoy.
Sage (www.sageconsultants.com) will operate in conjunction with Devlin Applied
Design and complement Envoy's internationally recognized web development
services with leading edge e-commerce, knowledge management and infrastructure
solutions. Sage is a leading Microsoft Solution Provider Partner in Canada and
New York. Sage is part of an elite group of organizations that sit on
Microsoft's Partner Advisory Council providing guidance on key issues that
ultimately shape Microsoft's channel strategy for delivering solutions and
services.
"This year we committed to a growth strategy that included acquisitions in each
of our core areas of business: technology, marketing and branding," said
Genovese. "The addition of Sage to Envoy gives us a leadership position in the
world of e-business."
"The Sage acquisition is a strategic move that adds $15 million to Envoy's
gross margin, brings our 12 month rolling forecast to almost $70 million and is
accretive to our earnings," said Joe Leeder, Envoy's CFO. "The Sage purchase is
a significant step in helping us reach this year's goal of $100 million in
gross margin."
With 75 consultants and offices in New York and Toronto, Sage currently
provides back-end e-business solutions to an impressive list of blue-chip
clients, including: Hewlett Packard (USA), State Farm (USA), Prudential (USA),
TD Waterhouse (USA), Fairmont Hotels (USA), CIBC, IMAX and Panasonic.
"We share Envoy's positive vision on the convergence of marketing and
technology," said Chetan Mathur, Sage's CEO. "Bringing together Envoy and Sage
creates the first full-service, truly integrated and strategically-minded
marketing and technology company in Canada."
"Sage is a great complement to Devlin's existing services," said Catharine
Devlin, President of Devlin Applied Design. "By merging Sage's back-end
solutions and Microsoft accreditation with Devlin's web design skills and IBM
and Oracle expertise, we are platform agnostic and able to provide our clients
with complete and fully integrated digital solutions."
Award winning Devlin Applied Design (www.devlin.ca) is renowned for integrating
technical, psychological and usability needs with graphic user interface (GUI)
design to create effective, web-enabled business solutions for its list of
leading North American clients, including: BASF, Pizza Hut Canada, FedEx, CAMCO,
CCOHS, SportsRocket.com, Health Canada, Woodfur.com, IMAX Corporation, MAC
Cosmetics.
A new breed company, Envoy (www.envoy.to) is an integrated e-Marketer,
digitally driven and committed to building global brands both off and on-line.
In addition to Sage Information Consultants and Devlin Applied Design, Envoy
owns leading advertising and e-Marketing agencies, Communique, FUSIONcreative,
Hampel/Stefanides of New York and The Watt Group. Envoy's roster of clients
include: adidas-Salomon Canada, Aer Lingus, Alliance Atlantis, Benjamin Moore,
Bermuda Telephone, Bridgestone/ Firestone, Canada Life, Castrol, CDNOW,
Fisherman's Friend, Honda, Hummingbird, Juno Online Services, LCBO, National
Discount Brokers, Oxford Properties, PETsMART, PhoneFree, Safeway, Sprint
Canada, Steelcase, Taylor Made, Toshiba Canada, Toshiba America and Wal-Mart.
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Corporate Investor Relations: Jason Mandel (416) 599-2256, [email protected]
Investor Relations Group: 1-800-444-9214 [email protected]
Media Relations: Darren Karasiuk
(416) 593-7555 ext.505 [email protected]
