DENVER and WOBURN, Mass., Oct. 12 /PRNewswire/ -- TeleTech Holdings, Inc.
(Nasdaq: TTEC), one of the fastest-growing global providers of customer
management and B2B infrastructure services, and Boston Communications Group
(Nasdaq: BCGI), the leading provider of prepaid services to wireless carriers
in America, today announced that TeleTech will acquire the customer care
division of Boston Communications Group in an asset purchase transaction.
Boston Communications Group's customer care/teleservices division provides
24x7 inbound customer care solutions for the wireless industry.
Per the agreement, TeleTech and Boston Communications Group also formed a
strategic alliance to jointly market and sell their products on a worldwide
basis, bringing a powerful suite of capabilities to wireless carriers and the
emerging mobile/electronic commerce market.
TeleTech will purchase the customer care division of BCGI in a cash
transaction valued at $15 million, including a $13 million cash payment and
assumption of approximately $2 million of liabilities. Under the terms of the
agreement, BCGI will receive additional cash payments, totaling up to an
additional $20 million over the next four years, based upon achievement of
predetermined revenue targets for its customer care division. The boards of
directors of both companies have approved the transaction, which is subject to
clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other
customary closing conditions. This transaction is expected to close in early
November.
This acquisition is consistent with TeleTech's vertical market expansion
plans, greatly enhancing its strategic position in the wireless market. The
acquisition is expected to be accretive to TeleTech in 2000 and 2001 and will
be accounted for under the purchase method of accounting.
After taxes, Boston Communications Group expects that the initial
installment on the sale will contribute to a fourth quarter extraordinary gain
in the range of $2 to $3 million. BCGI will treat the transaction as a
discontinued operation effective September 30, 2000. Although historically
the division has contributed positively to corporate overhead, BCGI does not
expect the sale to impact current consensus estimates.
"Our acquisition of Boston Communications' customer care division and our
strategic alliance will further position TeleTech as the dominant eCRM
provider to the telecommunications industry and greatly expand its presence in
the fast-growing wireless market," said Scott Thompson, president and CEO of
TeleTech. "BCGI has a client roster that includes 23 of the 25 largest
wireless operators in North America, which positions them as a clear leader in
both the prepaid and post-paid wireless services market. TeleTech will
leverage BCGI's existing strong relationships and will capitalize on the
opportunities that will be created as BCGI moves aggressively into the
mobile/electronic commerce market."
"We are thrilled to have aligned ourselves with a leading, global eCRM
provider like TeleTech. We believe the company's world-class technology will
offer tremendous value to our wireless customers," said E.Y. Snowden,
president and chief executive officer of Boston Communications Group. "The
sale of our customer care division reflects our ongoing strategy to increase
shareholder value through focusing on our leadership position in the high
growth prepaid wireless business while entering into the new mobile/electronic
commerce operations that offer exciting new opportunities for our company. At
the same time, TeleTech will be able to focus its industry-leading customer
care expertise in the wireless and mobile e-commerce industries."
According to Yankee Group, the number of prepaid wireless users in the
U.S. will grow approximately 60% per year from 1999 to 2003. The Yankee Group
also estimates that 64% of total net subscriber additions and more than 22% of
wireless subscribers will be prepaid in 2003. Estimates from the Yankee Group
indicate that prepaid wireless in North America was a $1.5 billion industry in
1999.
Boston Communications' customer care division is estimated to generate
approximately $30 million in revenues in 2000, servicing most of the top
wireless carriers in North America. The division currently operates
434 workstations through three customer interaction centers in North America.
TeleTech will assume operations of Boston Communications' centers in Deland,
Fla. and Lowell, Mass., and business from BCGI's other center will be
re-deployed. TeleTech will retain the existing management at the Deland and
Lowell centers.
INVESTOR CONFERENCE CALL
Management of TeleTech and Boston Communications Group will hold a joint
conference call/Webcast to discuss today's announcement at 11 a.m. EDT. All
interested parties can access the call by dialing 913-981-5522. A replay of
the conference call will be available by dialing 719-457-0820 (code:422189),
starting at approximately 2 p.m. EDT and will play for seven days. The
conference call will also be simulcast live on the Internet via TeleTech's web
site at http://www.teletech.com and on Boston Communications Group's web site
at http://www.boscomm.net. The replay will be available at either of these
locations for 90 days.
TELETECH PROFILE
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
operates 18,200 Internet-enabled customer interaction center workstations and
employs more than 22,300 people in ten countries. 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. Its innovative
customer interaction platform, CyberCare, integrates the full spectrum of
voice and Internet communications, including custom e-mail response, "chat"
and extensive Web co-browsing capabilities. Through 42 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 in
acquiring, retaining and growing customer relationships. Information
regarding TeleTech Holdings can be found on the Worldwide Web at
http://www.teletech.com.
BOSTON COMMUNICATIONS GROUP PROFILE
Boston Communications Group, Inc. (Nasdaq: BCGI) is the leading provider
of prepaid services to wireless carriers in America. Founded in 1988, BCGI
provides telecommunications carriers with a range of resources, support
services, and cutting edge technology targeted to address the unique needs of
the growing prepaid, electronic, and mobile commerce industries. BCGI
provides one or more of its services to the top five wireless carriers in the
United States, plus more than 80 additional carriers worldwide. Each service
plays an integral role in BCGI's mission: Accelerating telecommunications
growth with mission-critical solutions for its business partners. Please
visit BCGI's web site at http://www.bcgi.net.
FORWARD LOOKING STATEMENTS
Statements not based on historical fact are forward-looking statements
that involve substantial risks and uncertainties. Under the provisions of the
Private Securities Litigation Reform Act of 1995, TeleTech cautions investors
that actual results may differ materially from those expressed or implied due
to various risks and uncertainties. Such factors include, without limitation,
difficulties and unforeseen costs may arise in the integration of Boston
Communications Group's business and operations; compatibility and integration
difficulties may occur between the operating systems, software or hardware of
TeleTech and Boston Communications Group; and TeleTech's success may be
adversely affected by market demand and by competition from new and existing
entrants into the CRM market. TeleTech's future results may also be impacted
by the other risk factors listed in its Annual Report on Form 10-K and in
other SEC filings. TeleTech undertakes no obligation to update its forward
looking statements after the date of this release.
SOURCE TeleTech Holdings, Inc.
Web site: http://www.teletech.com
Company News On-Call: http://www.prnewswire.com/comp/107907.html
or fax, 800-758-5804, ext. 107907
CONTACT: Kirsten Hamling, Investor Relations of TeleTech,
303-894-7379, kirstenhamling@teletech.com; or Karen Walker, Chief
Financial Officer of Boston Communications Group, 617-692-7000,
karen_walker@boscomm.net
