ENGLEWOOD, Colo., June 30 /PRNewswire-FirstCall/ -- TeleTech Holdings,
Inc. (Nasdaq: TTEC), a leading global business process outsourcing (BPO)
provider, today announced it has completed the acquisition of Direct Alliance
Corporation, a wholly-owned subsidiary of Insight Enterprises, Inc.
(Nasdaq: NSIT), a leading provider of information technology solutions.
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-based systems that allow
customers to transact business in a collaborative e-commerce environment.
Direct Alliance offers outsourced sales and account management services that
help the Fortune 500 efficiently serve small and midsize businesses, a segment
expected to reach $400 billion in 2006. In addition, Direct Alliance enables
its clients to penetrate disparate divisions of large commercial and
"Direct Alliance's ability to offer a professionally-oriented sales and
account management capability is an extremely attractive extension of our
business offering," said Kenneth Tuchman, chairman and chief executive officer
of TeleTech. "This acquisition further strengthens our commitment to growth
and our ability to provide a more comprehensive suite of outsourced marketing,
sales, and customer management solutions to both TeleTech's and Direct
Alliance's large multinational clients."
In 2005, Direct Alliance generated revenue of $77.4 million. TeleTech
believes the acquisition will be slightly accretive to GAAP earnings during
the first 12 months of combined operations.
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 570 on
Fortune Magazine's 2006 'Fortune 1000' list. For additional information about
Direct Alliance Corporation, visit www.directalliance.com.
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 successfully
integrate 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)); 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.
Both of TeleTech Holdings, Inc.