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EXHIBIT 99
TUESDAY, JUNE 20, 8:04 A.M. EASTERN TIME
REYNOLDS AND REYNOLDS SELLS ITS INFORMATION SOLUTIONS GROUP TO THE CARLYLE GROUP
FOR $360 MILLION
REYNOLDS BOARD INCREASES SHARE REPURCHASE AUTHORIZATION BY 5 MILLION SHARES
DAYTON, OHIO, JUNE 20, 2000 -- The Reynolds and Reynolds Company (NYSE:REY)
announced today that it has reached a definitive agreement to sell its
Information Solutions Group (ISG), the company's document outsourcing and
customer relationship management business, to The Carlyle Group for $360 million
cash. ISG's current 12-month revenue run rate is about $800 million. The company
intends to close the transaction, subject to regulatory approval, during its
fourth fiscal quarter which ends September 30.
Rodney Hedeen, president of ISG, will become chief executive officer of the new
company. The name of the business will be revealed when the transaction closes.
"ISG has built a very strong business which we expect to continue to grow
aggressively in the years ahead. We see no significant changes in the workforce
and intend to keep the company headquarters in the Dayton region," Hedeen said.
"Our management team is very excited to enter this partnership with Carlyle. We
will continue to drive our business strategy of innovative products and
services, superior customer satisfaction, and operational excellence. We are
clearly on a mission to grow the business and extend our market leadership."
David R. Holmes, Reynolds chairman and CEO, said, "We're very proud of the ISG
team. They've created a business with solid revenue growth and profitability,
and the industry's highest customer satisfaction level and return on net assets.
Now, with a clear focus on value-added document management and marketing
solutions, we believe the future looks even brighter for ISG. We're very happy
that Carlyle plans to retain the management team, the ISG associates and
headquarters in the Dayton area. This is a great day for our ISG associates, the
community and the 'new Reynolds' which is now focused exclusively on leading the
transformation of automotive retailing."
Reynolds will use the proceeds from the sale to fund its growth initiatives and
share repurchase programs, as well as for general corporate purposes. At a
meeting yesterday, Reynolds' board of directors approved increasing the
company's share repurchase authorization by 5 million shares, from 1.7 million
to 6.7 million shares.
The Carlyle Group, founded in 1987, is a Washington D.C.-based global, private
equity firm that organizes, structures and acts as lead equity investor in
management-led buyouts, private placements and venture capital transactions.
Carlyle has more than $10 billion of capital under management. For more
information, visit Carlyle's Web site at http://www.thecarlylegroup.com.
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Reynolds and Reynolds, headquartered in Dayton, Ohio, provides advanced
solutions for the worldwide automotive retailing marketplace. The company
reported revenues of $1.56 billion in fiscal year ended Sept. 30, 1999. For more
information on Reynolds and Reynolds, visit http://www.reyrey.com, or call The
Reynolds and Reynolds Information Hotline at 1-888-4REYREY.
Certain statements in this news release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements are based on current expectations, estimates,
forecasts and projections of future company or industry performance based on
management's judgment, beliefs, current trends and market conditions.
Forward-looking statements made or to be made by or on behalf of the company may
be identified by the use of words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" and similar expressions.
Forward-looking statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to predict.
Actual outcomes and results may differ materially from what is expressed,
forcasted or implied in the forward-looking statements. See also the discussion
of factors that may affect future results contained in the company's Current
Report on Form 8-K filed with the SEC on February 9, 2000, which we incorporate
herein by reference. The company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.
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CONTACTS:
MEDIA INVESTORS
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Reynolds and Reynolds Reynolds and Reynolds
Paul Guthrie Mitch Haws
937.485.4216 937.485.4460
[email protected] [email protected]
ISG
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Sharon Williamson
937.485.8304
[email protected]
