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) May 1, 1998
APAC TELESERVICES, INC.
(Exact name of registrant as specified in charter)
Illinois 0-26786 36-2777140
(State or other jurisdiction (Commission (IRS Employer
of incorporation) file number) Identification No.)
One Parkway North Center, Suite 510, Deerfield, IL 60015
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 847/374-4980
N/A
(Former name or former address, if changed since last report)
Item 5. OTHER EVENTS
On May 1, 1998, Registrant issued a press release, a copy of which is
attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit No. Description of Document
(99.1) Press release dated May 1, 1998, issued by the
Registrant.
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.
Date: May 1, 1998 APAC TELESERVICES, INC.
By: /s/ John I. Abernethy
John I. Abernethy
Chief Financial Officer
FOR IMMEDIATE RELEASE
INVESTOR CONTACT:
THOMAS W. EBERHARDT
DIRECTOR, TREASURY OPERATIONS
847-374-1949
MEDIA CONTACT:
DANIEL BAUER
VICE PRESIDENT
847-374-1943
APAC ACQUIRES ITI MARKETING SERVICES,
BECOMES LARGEST TELESERVICES PROVIDER
Deerfield, Ill. (May 1, 1998) APAC TeleServices, Inc. (NASDAQ:APAC), a
premier provider of outsourced customer service and sales, today announced that
it has signed a definitive agreement to acquire through merger ITI Marketing
Services, Inc., a leader in customer capture and care solutions. With this
purchase, APAC becomes the nation's largest teleservices firm with over 14,000
workstations. The two companies' combined annual revenue for 1997 was $492
million.
"This acquisition extends our platform and leadership position," said
Theodore G. Schwartz, chairman and chief executive officer of APAC. "The
opportunity is vast -- a rapidly growing, yet relatively untapped teleservices
market approaching $100 billion. More than ever, APAC is the strategic partner
for leading companies seeking to optimize their customer relationships," added
Schwartz. We deliver management depth, people development processes, state-of-
the-art technology, database expertise, and the flexibility to respond to a wide
variety of client needs, including those involving very large and highly
sophisticated requirements."
"We have been familiar with ITI and its strong management team for years,"
observed Marc S. Simon, APAC s president and chief operating officer. "Their
highly respected reputation is built on superior performance, breadth of
solutions, and consultative account management. With outstanding people, strong
values and consistently strong results for clients," noted Simon,
"these two companies make an ideal match."
Schwartz continues as chairman and CEO of the expanded company, and Simon
remains as president and chief operating officer. Reporting to Simon will be
ITI's president and CEO, Raymond R. Hipp, who will have added responsibility for
the integration and consolidation of the two companies. Joining Hipp will be
ITI's entire executive team. He will be nominated to join APAC's board of
directors.
"Our management and staff are excited and enthusiastic about this great
opportunity," explained Hipp. "By joining APAC, we will leverage our growing
strength, refine our strategic direction and substantially expand our revenue
base and platform. Merging our best practices, we will contribute resources and
add efficiencies to the combined company. This will reset industry benchmarks
and raise the bar even higher."
In the near term, APAC and ITI will continue to serve clients through their
respective organizations. As operating efficiencies are identified and new
opportunities emerge, the company will consolidate redundant functions.
The acquisition is expected to close by the end of May. In exchange for
100% of the outstanding equity of ITI, APAC will pay $155.2 million in cash
subject to certain adjustments. For the remainder of 1998, the impact of this
transaction may be slightly dilutive. For years 1999 and thereafter, APAC
expects the transaction to be accretive.
Headquartered in the Chicago suburb of Deerfield, Illinois, APAC operates
66 customer contact centers with more than 15,000 employees in 14 states. With
the acquisition of ITI, these numbers will grow to 90 centers with 25,000
employees in 19 states.
Founded in 1973, APAC seeks to optimize the value of its clients' customer
relationships by improving customer service, increasing sales, leveraging
technology and managing change for corporate growth. Clients include some of
the best-managed, most highly respected corporations in America. These
corporations represent a wide range of industries including business and
consumer products, financial services, insurance, delivery, retail, technology,
communications and energy. The company's Web site address is
www.apacteleservices.com.
ITI Marketing Services, Inc. was founded in 1986 by Sheri Idelman who was
joined later by Steve Idelman, her husband. In August 1995, a majority interest
in the business was acquired by Golder, Thoma, Cressey, Rauner, a Chicago-based
private equity investment firm. Based in Omaha, Nebraska, the company has 24
customer contact centers with more than 10,000 employees in seven states. ITI
creates programs to build, maintain and enhance customer sales and service
opportunities across channels. The company has established a reputation for
strong management, superior quality and top performance for clients across a
range of industries.
In August 1997, APAC acquired Paragren Technologies, Inc., headquartered in
Reston, Virginia. Paragren provides innovative marketing solutions to drive
enterprise-wide customer intelligence for organizations in the
telecommunications, financial services, energy and retail industries.
Paragren's solutions transform information in data warehouses to support
customer-centric, one-to-one marketing. The company's core competencies include
the One-By-One(R) marketing software suite, consumer-panel market intelligence,
data warehouse consulting and database outsourcing. Additional information is
available at their Web site www.paragren.com.
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