CSG Systems Signs Definitive Agreement to Acquire DataProse, Inc.
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Acquisition Expands Statement Presentment Capabilities with Entry
into New Vertical Markets and Geographical Footprint
ENGLEWOOD, Colo.--(Business Wire)--
CSG Systems International, Inc. (NASDAQ: CSGS), a leading provider
of outsourced solutions that facilitate customer interaction
management, today announced that it has reached an agreement to
acquire DataProse, Inc., a privately-held provider of statement
presentment and direct mail services headquartered in Oxnard,
California.
The acquisition of DataProse furthers CSG's objective of helping
its clients maximize every customer interaction by both strengthening
and broadening CSG's portfolio of output solutions capabilities.
DataProse enhances CSG's suite of advanced, turnkey solutions for
personalized statement presentment in both paper and electronic
formats, and adds extensive expertise in direct mail marketing
services, including database management and market segmentation.
Furthermore, with this acquisition, CSG continues to diversify its
customer base into the utilities, financial services and
telecommunications markets, and adds customers in the non-profit
sectors of healthcare and higher education.
DataProse assists over 500 clients across the United States to
market through improved billing statement presentation and
personalized direct mail. The majority of its revenues come from its
Billing Solutions division that produces monthly statements and
provides bill issuers with outsourced solutions to more effectively
communicate with customers, lower billing costs, accelerate payment
cycles and reduce costly billing errors. DataProse also provides
direct mail marketing services to support fundraising efforts of large
non-profit organizations. Co-founded in 1990 by Xerox veteran Glenn
Carter and Kinko's founder Paul Orfalea, DataProse has over 130
employees and operates production facilities in Oxnard, California and
Dallas, Texas. DataProse currently produces more than 5 million
statements each month, which compares to CSG's current statement
production of approximately 60 million statements per month.
"Through this acquisition, CSG strengthens its industry-leading
statement presentment platform while furthering its reach into new
vertical markets," said Pam Sellenrick, senior vice president and
general manager of CSG Statement Processing Centers. "Additionally,
this acquisition rounds out CSG's national statement presentment
footprint, a key competitive differentiator."
"We are excited to join forces with CSG, an established leader in
statement presentment," said Glenn Carter, DataProse's co-founder and
president. "Our combined expertise and unmatched portfolio of
capabilities will be of great benefit to our client base as they seek
to improve and capitalize upon their client communications."
Financial Terms and 2008 Guidance Impact
CSG will acquire DataProse for approximately $39 million in cash,
to be paid upon closing of the transaction, which is expected to be
April 30, 2008, pending normal regulatory approvals and other
customary closing conditions.
CSG expects the acquisition of DataProse will add approximately
$15 million of revenue for the remainder of 2008, assuming an April
30, 2008 closing. CSG expects to incur certain acquisition-related
charges and ongoing amortization of intangible assets related to this
acquisition in 2008. Excluding the impacts of these
acquisition-related charges, which could vary from our original
estimate based on final purchase accounting, CSG does not expect this
acquisition will have a material impact on its overall results of
operations for the full year 2008.
About CSG Systems
Headquartered in Englewood, Colorado, CSG is a leading provider of
outsourced solutions that facilitate customer interaction management
on the behalf of our clients, generating a large percentage of
revenues from the North American cable and Direct Broadcast satellite
("DBS") communications markets. Our solutions also support an
increasing number of other industries such as financial services,
utilities, telecommunications, and home security. Our solutions manage
key customer interactions such as set-up and activation of customer
accounts, sales support and marketing, order processing, invoice
calculation (i.e., customer billing), production and mailing of
monthly customer invoices, management reporting, electronic
presentment and payment of invoices, automated and interactive
messaging, and deployment and management of the client's field
technicians to the customer's home. Our unique combination of
solutions, services, and expertise ensure that our clients can rapidly
launch new service offerings, improve operational efficiencies, and
deliver a high-quality customer experience in a competitive and
ever-changing marketplace. For more information, visit our website at
www.csgsystems.com.
About DataProse
DataProse, Inc., founded in 1990 and headquartered in Oxnard,
California, is a leading provider of billing statement presentment and
direct mail services. DataProse provides billing statement design,
print, mail and electronic presentment and payment for municipal and
private utilities, financial services, energy, telecommunications and
waste management companies. DataProse renders direct mail fundraising
and membership acquisition services for non-profit organizations in
the healthcare, higher education, zoos and aquariums, and
social/cultural market segments. For more information on DataProse,
visit www.dataprose.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined
under the Securities Act of 1933, as amended, that are based on
assumptions about a number of important factors and involve risks and
uncertainties that could cause actual results to differ materially
from what appears in this news release. These factors include, but are
not limited to: 1) the concentration of approximately two-thirds of
CSG's revenues with four clients; as a result, the loss of business
from any one of those clients could potentially have a material
adverse impact to CSG's financial results; 2) continued market
acceptance of CSG's Advanced Convergent Platform (ACP) and related
products and services; 3) CSG's ability to continuously develop and
enhance products in a timely, cost-effective, technically advanced and
competitive manner; 4) CSG's dependency on the North American
communications industry; as a result, key market factors such as
further industry consolidation, new market entrants that may not be
clients of CSG, economic conditions, and/or the financial status of
CSG clients may affect CSG's ability to maintain and expand market
share; 5) increasing competition in our market from companies of
greater size and with broader presence in the communications sector,
thus exerting greater influence over client buying decisions; 6) CSG's
ability to successfully integrate and manage acquired businesses,
technology or assets to achieve the expected strategic, operating and
financial goals established for such acquisitions; 7) CSG's continued
ability to protect its intellectual property rights; and 8) CSG's
dependency on a variety of computing environments and communications
networks, thus subjecting CSG to the risks of extended interruptions,
outages, unauthorized access and corruption of data. This list is not
exhaustive and readers are encouraged to review the additional risks
and important factors described in CSG's reports on Forms 10-K and
10-Q and other filings made with the SEC.
CSG Systems International, Inc.
Elise Brassell, 303-804-4962
elise_brassell@csgsystems.com
or
Investor Relations
Roger Metz, 303-804-4082
roger_metz@csgsystems.com
Copyright Business Wire 2008
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