Technology-Based Solution Furthers TeleTech's Revenue Diversification
Efforts;
Anticipated to Close Late in the Second Quarter
2011;
Expected to be Immediately Accretive to Earnings When
Closed
ENGLEWOOD, Colo., Mar 17, 2011 (BUSINESS WIRE) --
TeleTech Holdings, Inc. (NASDAQ: TTEC), one of the largest global
providers of technology-enabled business process outsourcing solutions
that drive commerce and differentiate the customer experience, today
announced the signing of a definitive agreement to acquire the
Integrated Contact Solutions (ICS) business unit and associated assets,
including intellectual property, of eLoyalty Corporation.
ICS had fiscal 2010 revenue in excess of $54 million with respect to the
portion of the business that TeleTech will acquire. ICS has garnered
industry recognition for its more than 20 years of technical expertise
in transforming customer management environments on behalf of large,
multinational clients. ICS has deep roots in consulting, systems
integration, 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 of ICS will further TeleTech's revenue diversification
efforts into greater consultative and technology-based offerings that
optimize the customer experience. Specifically, it will expand
TeleTech's existing suite of cloud-based solutions with an end-to-end
capability that spans both fully managed and hosted customer management
environments. Additionally, ICS will benefit from leveraging TeleTech's
extensive global IP-based infrastructure.
"Since our founding, TeleTech has been at the forefront of addressing
market trends," said Ken Tuchman, TeleTech chairman and chief executive
officer. "Today, more than ever, clients are seeking a partner who can
bring strategy, technology and operations together to seamlessly deliver
a truly transformative customer experience. The combination of Peppers
and Rogers Group's consultative strength, ICS's technological expertise
and TeleTech's operational excellence gives us an unparalleled ability
to deliver on this challenge."
The acquisition is anticipated to close late in the second quarter 2011,
pending certain approvals, and is expected to be immediately accretive
to TeleTech's earnings.
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 more than 45,500
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
