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
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
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.
"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."
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
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.
CONTACT: Emily Eikelberner, Investor Relations, 303-894-7360,
firstname.lastname@example.org, or Claire Maledon, Media Relations,
720-947-6182, email@example.com, both of TeleTech Holdings, Inc./