OMAHA, Neb., Nov 17, 2004 /PRNewswire-FirstCall via COMTEX/ -- West Corporation (Nasdaq: WSTC), a leading provider of outsourced communication solutions, today announced that it has signed a definitive agreement to acquire ECI Conference Call Services LLC (ECI) for $52 million in cash.
The acquisition is expected to close on December 1st 2004 and will be funded with cash and borrowings from West's existing bank credit facility. This acquisition is subject to customary closing conditions. ECI will be acquired from global investment group Investcorp.
Based in Wayne, New Jersey, ECI has successfully carved out a niche in high-quality operator-assisted calls and is known for its technology and customer service. The company's clients include leading east coast U.S. financial, government, legal, education, and healthcare organizations.
"This acquisition is an important addition to our Conferencing segment, adding scale and strengthening our position in managing operator assisted calls," explained Thomas Barker, Chief Executive Officer of West Corporation. "We are confident we will be able to quickly integrate ECI and leverage our existing capabilities to achieve significant cost savings."
In 2004, ECI is expected to produce annual revenue of approximately $35 million. West expects to integrate a portion of the administrative functions of ECI with its existing conferencing segment, which will result in operating income margins for ECI of 20% to 21% next year before acquisition amortization expense. Given the cyclical nature of the conferencing sector and the approaching holiday season, the acquisition is not expected to contribute to West's net income during December, but is expected to be accretive in 2005.
About West Corporation
West Corporation is a leading provider of outsourced communication solutions to many of the world's largest companies. The company helps its clients communicate effectively, maximize the value of their customer relationships and drive greater revenue from each transaction. West's integrated suite of customized solutions includes customer acquisition, customer care and retention services, interactive voice response services, conferencing and accounts receivable management services.
Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 27,000 employees based in North America, Europe and Asia. For more information, please visit http://www.west.com .
This news release contains forward-looking statements within the meaning of the Federal securities laws. You can identify forward-looking statements by the use of words such as "will," "expects," "plans," "believes," "estimates," "intend," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. For example, statements of expected accretion, future revenues and margins, and timing of closing are all forward-looking statements.
Our results could differ materially from the expectations expressed in these statements. Factors that could cause our results to differ include the possibility that the market for our accounts receivable management segment may not develop as expected; the transaction does not close; that prior to the closing of the proposed acquisition, the businesses of the companies suffer due to uncertainty; the parties are unable to successfully execute their integration strategies or achieve planned synergies; our operating results may be harmed if we are unable to maximize our call center utilization; increases in the cost of telephone and data services or significant interruptions in such services could seriously harm our business; we must continue to attract and retain a sufficient number of qualified employees; as well as the other risks that are described from time to time in our SEC reports (including but not limited to our annual report on Form 10-K for the year ended December 31, 2003, and subsequently filed reports). We assume no obligation to update these forward-looking statements.
SOURCE West Corporation
Carol Padon, Investor Relations of West Corporation, +1-402-963-1500 (WSTC)
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