<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 21, 1998.
SITEL CORPORATION
(Exact name of registrant as specified in its charter)
Minnesota 1-12577 47-0684333
(State or jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
13215 Birch Street
Omaha, Nebraska 68164
(402) 963-3010
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
_________________________________________________
This 8-K consists of 6 pages. The exhibit index is on page 4.
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Item 5. OTHER EVENTS.
On January 21, 1998, the registrant announced that it has signed an agreement
with Lend Lease Corporation Limited, Sydney, Australia ("Lend Lease"), for a
joint venture to provide outsourced call center solutions throughout Asia
Pacific. Lend Lease will initially acquire a 20 percent interest in SITEL's
existing Asia Pacific business for (Aus)$10 million (approximately (US)$6.5
million) and is expected to eventually increase its stake to between 40 percent
and 49 percent. The Joint Venture excludes SITEL's Telebusiness business unit
which provides information technology solutions for call centers in the Asia
Pacific region. As a result, SITEL will record a writedown of its investment in
Telebusiness of approximately $8 to $12 million in the fourth quarter ended Dec.
31, 1997.
Details of such announcement are contained in the news release issued by the
registrant on January 21, 1998, a copy of which is filed as an Exhibit to this
Form 8-K.
Forward-Looking Information:
This Form 8-K contains forward-looking statements as to SITEL's expectations
regarding an eventual increase in Lend Lease's ownership stake in SITEL Asia
Pacific and the ability of the joint partners to work well together. Such
forward-looking statements involve substantial risks and uncertainties. While
the risks and uncertainties cannot all be predicted or quantified, important
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements include, without
limitation, the following: Lend Lease has no obligation to increase its
ownership stake in SITEL Asia Pacific and may choose, for reasons related or
unrelated to the performance of the joint venture, including a change in its
business objectives, not to increase its ownership stake or to dispose of its
initial ownership stake in SITEL Asia Pacific. The ability of SITEL and Lend
Lease to work well together will depend on many tangible and intangible factors,
including without limitation the working relationship of the Lend Lease and
SITEL executives running the day-to-day operations, the integration of the
business cultures of Lend Lease and SITEL, and the convergence of the business
objectives of each joint venture partner. Readers are encouraged to read the
Risk Factors section of SITEL's most recent prospectus dated November 25, 1997,
and SITEL's Form 10-K filed April 16, 1997, which describe other important
factors that may impact the results expressed or implied by the forward-looking
statements in this Form 8-K.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
99.1 News release of SITEL Corporation dated January 21, 1998.
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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, thereunto duly authorized.
Date: January 22, 1998 SITEL Corporation
By: /s/Barry S. Major
_________________________________________
Barry S. Major,
Executive Vice President-Finance,
Chief Financial Officer, and Secretary
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INDEX TO EXHIBITS
Exhibit Page
No. No.
_______ _______
99.1 News release of SITEL Corporation dated January 21, 1998. 5
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EXHIBIT 99.1
FROM: FOR:
Swenson NHB Investor Relations SITEL Corporation
121 South Eighth St. Suite 1111 300 East Lombard, Suite 850
Minneapolis, Minn. 55402 Baltimore, Md. 21202
Contact: Doug Ewing 612-371-0000
Contact: Phil Clough, President, or
Jim Jacobson, Investor Relations
410-659-5700
SITEL AND LEND LEASE CORPORATION (AUSTRALIA) ESTABLISH JOINT VENTURE
Joint Venture to Provide Outsourced Call Center Solutions
Throughout the Asia Pacific Region
OMAHA, Neb., Jan. 21 -- SITEL Corporation (NYSE:SWW), the global leader in
teleservicing, today announced that it has signed an agreement with Lend Lease
Corporation Limited, Sydney, Australia, to provide outsourced call center
solutions to corporations and government organizations throughout Asia Pacific.
The joint venture will be named SITEL Asia Pacific, a Lend Lease Joint Venture
Company.
Lend Lease will initially acquire a 20 percent interest in SITEL's existing
Asia Pacific business for (Aus)$10 million (approximately (US)$6.5 million) and
is expected to eventually increase its stake to between 40 percent and 49
percent. The Joint Venture will extend to most countries in the Asia Pacific
region including Australia, Japan, Singapore and Hong Kong where SITEL Asia
Pacific currently operates five call centers. SITEL Asia Pacific currently has
a significant existing customer base including major multinational corporations
such as Microsoft and American Express.
Lend Lease Corporation is one of Australia's most successful companies with an
unbroken 20-year record of profit growth. With operating revenues for its most
recent fiscal year of approximately (US)$1.4 billion and net income of over
(US)$200 million, Lend Lease is a leader in property and financial services with
operations in Asia, Australia, North and South America and Europe. This
investment will be made by IT+T Investments, one of the eight divisions of Lend
Lease, which is responsible for the development of Lend Lease's information
technology and telecommunications business. Its current activities include
joint ventures with IBM and Telstra in Information Technology services (IBM
Global Services Australia) and network services (Advantra).
Michael P. May, SITEL Corporation's Chief Executive Officer said, "We are
immensely pleased and proud that Lend Lease, a leading company in the Asia
Pacific region, will be joining SITEL as our partner. Lend Lease's presence and
depth of resources in the region, combined with SITEL's breadth of experience in
providing outsourced teleservices for over 400 clients in 17 countries around
the world, is a combination that will permit us together to provide an
exceptionally high level of service to our clients in this part of the world.
We have been impressed with Lend Lease's energetic, innovative and
entrepreneurial culture and believe our two organizations will be able to work
extremely well together."
- more -
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- 2 -
The business will be headed initially by Susie Young of Lend Lease who will
act as President of SITEL Asia Pacific. The newly appointed Chief Operating
Officer of SITEL Asia Pacific is Lee Shelton, formerly president of SITEL's
telecommunications industry business unit in the United States. Mr. Shelton
will relocate to Sydney in March.
David Higgins, Managing Director of Lend Lease Corporation said, "I am
delighted that the leading provider of teleservices in the world has chosen Lend
Lease to be its partner in developing this capability throughout Asia Pacific.
The investment in SITEL Asia Pacific is a natural extension of Lend Lease's
expansion of information services throughout the region. Lend Lease's existing
investments in IBM Global Services Australia and Advantra have already exceeded
expectations and we expect the SITEL joint venture to follow suit."
The joint venture transaction with Lend Lease excludes SITEL's Telebusiness
business unit which provides information technology solutions for call centers
in the Asia Pacific region. As a result, SITEL will record a writedown of its
investment in Telebusiness of approximately $8 to $12 million in the fourth
quarter ended Dec. 31, 1997.
Michael May said, "Given Lend Lease's relationship with IBM Global Services,
it was clear that Telebusiness could not be included in this joint venture
opportunity. SITEL Telebusiness will continue its ongoing work with the support
of SITEL Corporation while we review the strategic opportunities for maximizing
our investment in this business."
SITEL Corporation is the global leader in providing outsourced telephone-based
customer service and sales programs on behalf of corporations worldwide. The
company operates over 12,500 workstations in 72 call centers in 17 countries
throughout North America, Europe, Latin America and Asia-Pacific, covers over 25
languages and dialects, serves over 400 clients in nine industries and employs
more than 18,000 people. For additional information about SITEL Corporation,
please visit the company's website at http://www.sitel.com
* * *
This news release contains forward-looking statements as to SITEL's expectations
regarding an eventual increase in Lend Lease's ownership stake in SITEL Asia
Pacific and the ability of the joint partners to work well together. Such
forward-looking statements involve substantial risks and uncertainties. While
the risks and uncertainties cannot all be predicted or quantified, important
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements include, without
limitation, the following: Lend Lease has no obligation to increase its
ownership stake in SITEL Asia Pacific and may choose, for reasons related or
unrelated to the performance of the joint venture, including a change in its
business objectives, not to increase its ownership stake or to dispose of its
initial ownership stake in SITEL Asia Pacific. The ability of SITEL and Lend
Lease to work well together will depend on many tangible and intangible factors,
including without limitation the working relationship of the Lend Lease and
SITEL executives running the day-to-day operations, the integration of the
business cultures of Lend Lease and SITEL, and the convergence of the business
objectives of each joint venture partner. Readers are encouraged to read the
Risk Factors section of SITEL's most recent prospectus dated November 25, 1997,
and SITEL's Form 10-K filed April 16, 1997, which describe other important
factors that may impact the results expressed or implied by the forward-looking
statements in this news release.
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1/21/98
