Deal Expands TeleTech's BPO Portfolio With Inside Sales, eCommerce,
and Channel Management Solutions
ENGLEWOOD, Colo., June 15 /PRNewswire-FirstCall/ -- TeleTech Holdings,
Inc. (Nasdaq: TTEC), a leading global business process outsourcing (BPO)
provider, today announced a definitive agreement to acquire Direct Alliance
Corporation, a wholly-owned subsidiary of Insight Enterprises, Inc.
(Nasdaq: NSIT), a large information technology provider.
Throughout its 13-year history, Direct Alliance has enabled some of the
world's best-known hardware, software, and electronics manufacturers to expand
market reach and increase revenue using Internet systems that allow customers
to transact business in a collaborative eCommerce environment. The company
offers outsourced sales and account management services that help the Fortune
500 efficiently target small and midsize businesses, a segment expected to
reach $400 billion in 2006. In addition, Direct Alliance enables its
customers to penetrate disparate divisions of large commercial and government
accounts. Direct Alliance also improves sales and streamlines channel costs
through proprietary systems and solutions to provide account management and
relationship services to customers in the U.S. and abroad.
This acquisition further strengthens TeleTech's commitment to growth and
its focus on providing outsourced marketing, sales, and customer management
solutions to large multinational clients. Such growth is a key component of
TeleTech's vision to integrate sales, service, support, and technology across
the customer management lifecycle for its existing and future customer base.
"Direct Alliance is a logical strategic fit for TeleTech," said Kenneth
Tuchman, chairman and chief executive officer of TeleTech. "Our existing
clients, primarily Global 1000 organizations, face numerous challenges when
serving the small and midsize business market and selling across divisions in
large multinational corporations and government agencies. By enhancing our
extensive portfolio of BPO capabilities with Direct Alliance's inside sales,
account management, and sophisticated distribution resource planning
technology, we can create meaningful growth opportunities for all of
TeleTech's current and prospective clients."
"We are thrilled that TeleTech will provide the platform to expand our
vertical industry presence and our product offerings, and we are excited at
the prospect of leveraging TeleTech's global footprint," said James Kebert,
president of Direct Alliance. "Direct Alliance has developed an excellent
reputation as an effective business process outsourcing provider for our
clients, and we look forward to offering these capabilities to TeleTech's
clients as well. We are confident this integration will enable us to leverage
our respective strengths quickly in order to grow our combined businesses."
For 2005, Direct Alliance generated revenue of $77.4 million. TeleTech
will acquire 100 percent of the common stock of Direct Alliance and believes
the all-cash acquisition will be slightly accretive to GAAP earnings during
the first 12 months of combined operations. The transaction is expected to
close on or before June 30, 2006.
CONFERENCE CALL
TeleTech management will host a conference call to discuss this
acquisition today, Thursday, June 15, 2006, at 4:30 p.m. eastern time. You
may access the call by visiting the Investors section of the TeleTech website
at www.TeleTech.com or by calling 210-234-0020 (passcode: TeleTech). If you
are unable to participate during the live conference call, a replay will be
available through Thursday, June 29, 2006 on the TeleTech website or by
calling 203-369-0712.
ABOUT TELETECH
TeleTech is a leading global business process outsourcing (BPO) company
that provides a full range of front-to-back office outsourced solutions
including customer management, transaction-based processing, and database
marketing services. TeleTech's comprehensive solutions include fully managed,
OnDemand services including infrastructure, software, and business
intelligence. TeleTech's ability to deliver innovative solutions globally
over a centralized and standardized delivery platform ensures a high quality,
consistent customer experience enabling clients to increase revenue, improve
profitability, and develop stronger customer relationships around the world.
TeleTech is a valued partner for clients that include Global 1000 businesses
and governments. Approximately 60 percent of TeleTech's revenue is generated
internationally with services offered in 150 languages from nearly every
continent on the globe. For additional information, visit www.TeleTech.com.
ABOUT DIRECT ALLIANCE CORPORATION
Direct Alliance creates custom business process outsourcing solutions for
clients who sell their products either directly or through channel sales
partners. Utilizing its proprietary technology, infrastructure and processes,
Direct Alliance manages analytics, direct marketing, sales, financial
services, logistics and supply chain management for its clients. These
services enable manufacturers of brand-name products to sell directly to
customers and support existing indirect sales channels in a cost-effective and
timely manner. Founded in 1993, Direct Alliance employs more than 700 people
in its Tempe, Arizona, headquarters. Direct Alliance is a wholly owned
subsidiary of Insight Enterprises, Inc., (Nasdaq: NSIT), ranked number 552 on
Fortune Magazine's 2005 'Fortune 1000' list. For additional information about
Direct Alliance Corporation, visit www.directalliance.com.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements that
involve risks and uncertainties. The projections and statements contained in
these forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance, or achievements to be materially different from any future
results, performance, or achievements expressed or implied by the
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 our actual results to differ
materially from those expressed or implied by such forward-looking statements,
including but not limited to the following: our ability to close on the
acquisition of Direct Alliance Corporation and create meaningful growth
opportunities for the combined businesses; our belief that the Direct Alliance
acquisition will be slightly accretive to GAAP earnings during the first 12
months of combined operations; our belief that we are continuing to see strong
demand for our services; estimated revenue from new, renewed, and expanded
client business as volumes may not materialize as forecasted or be sufficient
to achieve our Business Outlook; achieving expected profit improvement in our
International Customer Management operations; the ability to close and ramp
new business opportunities that are currently being pursued with existing
clients and potential clients in order to achieve our Business Outlook; our
ability to execute our growth plans, including sales of new products (such as
TeleTech On Demand(TM) and TeleTech In Culture(TM); our ability to achieve our
year-end 2006 and 2007 financial goals and targeted cost reductions set forth
in our Business Outlook; the possibility of our Database Marketing and
Consulting segment not increasing revenue, lowering costs, or returning to
profitability; the possibility of lower revenue or price pressure from our
clients experiencing a downturn or merger in their business; greater than
anticipated competition in the Business Process Outsourcing ("BPO") and
customer management market, causing adverse pricing and more stringent
contractual terms; risks associated with losing or not renewing client
relationships, particularly large client agreements, or early termination of a
client agreement; the risk of losing clients due to consolidation in the
industries we serve; consumers' concerns or adverse publicity regarding our
clients' products; our ability to find cost effective locations, obtain
favorable lease terms, and build or retrofit facilities in a timely and
economic manner; risks associated with business interruption due to weather or
terrorist-related events; risks associated with attracting and retaining
cost-effective labor at our customer management centers; the possibility of
additional asset impairments and restructuring charges; risks associated with
changes in foreign currency exchange rates; economic or political changes
affecting the countries in which we operate; changes in accounting policies
and practices promulgated by standard setting bodies; and new legislation or
government regulation that impacts the BPO and customer management industry.
Please refer to the Company's filings with the Securities and Exchange
Commission, including the Company's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2006, and the Annual Report on Form 10-K for the year
ended December 31, 2005, for a detailed discussion of factors discussed above
and other important factors that may impact the Company's business, results of
operations, financial condition, and cash flows. The Company assumes no
obligation to update its forward-looking statements to reflect actual results
or changes in factors affecting such forward-looking statements.
CONTACT:
Investors
Karen Breen
Investor Relations
+1-303-397-8592
Media
Amy Claire Wild
Marketing
+1-303-397-8450
Both of TeleTech Holdings,
Inc.
