Cloud-Based Technology Solution Furthers TeleTech's
Revenue Diversification Efforts; Acquisition Expected to be
Immediately Accretive to Earnings
ENGLEWOOD, Colo., May 31, 2011 (BUSINESS WIRE) --
TeleTech Holdings, Inc. (NASDAQ: TTEC), one of the largest
global providers of strategic consulting and technology-enabled
business process outsourcing solutions that drive commerce and
differentiate the customer experience, today announced it has
closed the acquisition of the Integrated Contact Solutions (ICS)
business unit and associated assets, including intellectual
property, of eLoyalty Corporation.
ICS has more than 20 years of business and technical expertise
in transforming customer management environments on behalf of
large, multinational clients. ICS has deep roots in consulting,
systems integration, and application development along with the
ongoing oversight of large, complex, multi-channel data, telephony
and converged IP-based customer management solutions leveraging
both cloud- and premise-based environments.
The acquisition will add 50 clients to TeleTech's base bringing
its total clients to more than 150, many of which are in the
Fortune 500. As with previous acquisitions, TeleTech will
fully leverage the sales opportunities within its expanded client
base and believes its embedded base will continue to be a strong
contributor to future growth.
ICS had fiscal 2010 revenue in excess of $54 million,
characterized by long-term recurring relationships, with respect to
the portion of the business that TeleTech has acquired. ICS will
continue to operate under the eLoyalty brand, expanding TeleTech's
existing suite of cloud-based solutions with end-to-end
capabilities spanning both hosted and fully managed customer
collaboration environments. Additionally, ICS will benefit from
leveraging TeleTech's extensive global IP-based infrastructure as
it continues to grow its share of the hosted market
opportunity.
"The acquisition of ICS furthers TeleTech's revenue
diversification strategy into greater consulting and
technology-based offerings that optimize the customer experience,"
said Ken Tuchman, chairman and chief executive officer. "The
combination of Peppers & Rogers Group's independent
consultative strength, ICS's technological expertise and TeleTech's
operational excellence, each with more than a 20-year operating
history, give us an unparalleled ability to bring strategy,
technology and execution together to help our clients seamlessly
deliver a truly transformative customer experience.
"TeleTech recognized the benefits of operating in a cloud-based
architecture and pioneered the move to this environment back in
2003. As clients increasingly look to TeleTech to provide an array
of technology-enabled, customer-centric offerings, ICS is a natural
extension of our ability to meet their needs while at the same time
diversifying our revenue into greater technology-based
solutions."
The acquisition is expected to be immediately accretive to
TeleTech's earnings and TeleTech plans to provide an updated 2011
business outlook when it releases its second quarter results in
early August.
ABOUT INTEGRATED CONTACT SOLUTIONS
Integrated Contact Solutions (ICS) line of business from
eLoyalty has been designing and implementing Customer Interaction
Solutions since 1990. Drawing on relationships with industry
leaders, cross-functional ICS teams combine comprehensive services
and industry-leading hardware and software to deliver best-in-class
solutions that transform the customer experience.
ABOUT TELETECH
For nearly 30 years, TeleTech and its subsidiaries have helped
the world's largest companies achieve their most ambitious goals.
As the go-to partner for the Global 1000, the TeleTech group of
companies delivers technology-based solutions that maximize
revenue, transform customer experiences and optimize business
processes. From strategic consulting to operational execution,
TeleTech's approximately 44,000 employees drive success for clients
in the communications and media, financial services, government,
healthcare, technology, transportation and retail industries. Our
companies deliver award-winning integrated solutions in support of
professional services,
revenue generation,
customer innovation,
enterprise innovation,
hosted technology and
learning innovation. For additional information, please visit
www.teletech.com.
FORWARD-LOOKING STATEMENTS
Statements in this press release that relate to future results
and events (including statements about future financial and
operating performance) are forward-looking statements based on
TeleTech's current expectations. Actual results and events in
future periods could differ materially from those projected in
these forward-looking statements because of a number of risks and
uncertainties including: achieving estimated revenue from new,
renewed and expanded client business as volumes may not materialize
as forecasted, especially due to the global economic slowdown;
achieving profit improvement in our International BPO operations;
the ability to close and ramp new business opportunities that are
currently being pursued or that are in the final stages with
existing and/or potential clients; our ability to execute our
growth plans, including the successful integration of acquired
companies and the sale of new products; the possibility of lower
revenue or price pressure from our clients experiencing a business
downturn or merger in their business; greater than anticipated
competition in the BPO services 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;
risks associating with integrating strategic acquisitions;
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, fires, pandemic, or terrorist-related events; risks
associated with attracting and retaining cost-effective labor at
our delivery centers; the possibility of 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 adversely impacts our tax
obligations, health care costs or the BPO and customer management
industry. A detailed discussion of these and other risk factors
that could affect our results is included in TeleTech's SEC
filings, including our Annual Report on Form 10-K for the year
ended December 31, 2010. The Company's filings with the Securities
and Exchange Commission are available in the "Investors" section of
TeleTech's website, which is located at
www.teletech.com. All information in this release is as of the
date of this release. The Company undertakes no duty to update any
forward-looking statement to conform the statement to actual
results or changes in the Company's expectations.
SOURCE: TeleTech
TeleTech
Investor Contact:
Karen Breen, 303-397-8592
or
Media Contact:
Bob Livingston, 303-397-8958
