Exhibit 99.1
TeleTech Holdings, Inc. • 9197 South Peoria Street • Englewood, CO 80112-5833 •
www.teletch.com
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Investor Contact:
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Media Contact: |
Karen Breen
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Amy Claire Wild |
Investor Relations
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Marketing |
303-397-8592
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303-397-8450 |
TeleTech Announces Agreement to Acquire Direct Alliance Corporation
Deal Expands TeleTech’s BPO Portfolio with Inside Sales, eCommerce,
and Channel Management Solutions
Englewood, Colo., June 15, 2006 — TeleTech Holdings, Inc. (NASDAQ: TTEC), a leading global
business process outsourcing (BPO) provider, today announced a definitive agreement to acquire
Direct Alliance Corporation, a wholly-owned subsidiary of Insight Enterprises, Inc. (NASDAQ: NSIT),
a large information technology provider.
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 systems that allow customers to transact business in a collaborative eCommerce
environment. The company offers outsourced sales and account management services that help the
Fortune 500 efficiently target small and midsize businesses, a segment expected to reach $400
billion in 2006. In addition, Direct Alliance enables their customers to penetrate disparate
divisions of large commercial and government accounts. Direct Alliance also improves sales and
streamlines channel costs through proprietary systems and solutions to provide account management
and relationship services to customers in the U.S. and abroad.
This acquisition further strengthens TeleTech’s commitment to growth and its focus on providing
outsourced marketing, sales, and customer management solutions to large multinational clients.
Such growth is a key component of TeleTech’s vision to integrate sales, service, support, and
technology across the customer management lifecycle for its existing and future customer base.
“Direct Alliance is a logical strategic fit for TeleTech,” said Kenneth Tuchman, chairman and chief
executive officer of TeleTech. “Our existing clients, primarily Global 1000 organizations, face
numerous challenges when serving the small and midsize business market and selling across divisions
in large multi-national corporations and government agencies. By enhancing our extensive portfolio
of BPO capabilities with Direct Alliance’s inside sales, account management, and sophisticated
distribution resource planning technology, we can create meaningful growth opportunities for all of
TeleTech’s current and prospective clients.”
“We are thrilled that TeleTech will give us the platform to expand our vertical industry presence
and our product offerings, and we are excited at the prospect of leveraging TeleTech’s global
footprint,” said James Kebert, president of Direct Alliance. “Direct Alliance has developed an
excellent reputation as an effective sales team for our clients, and we look forward to offering
these capabilities to TeleTech’s clients as well. We are confident this integration will enable us
to leverage our respective strengths quickly in order to grow our combined businesses.”
For 2005, Direct Alliance generated revenue of $77.4 million. TeleTech will acquire 100 percent of
the common stock of Direct Alliance and believes the all-cash acquisition will be slightly
accretive to GAAP earnings during the first 12 months of combined operations. The transaction is
expected to close on or before June 30, 2006.
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CONFERENCE CALL
TeleTech management will host a conference call to discuss this acquisition today, Thursday, June
15, 2006, at 4:30 p.m. eastern time. You may access the call by visiting the Investors section of
the TeleTech website at www.TeleTech.com or by calling 210-234-0020 (passcode: TeleTech). If you
are unable to participate during the live conference call, a replay will be available on the
TeleTech website through Thursday, June 29, 2006 or by calling 203-369-0712.
ABOUT TELETECH
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 552 on Fortune Magazine’s 2005 ‘Fortune
1000’ list. For additional information about Direct Alliance Corporation, visit
www.directalliance.com.
FORWARD-LOOKING STATEMENTS
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 close
on 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
DemandTM and TeleTech In CultureTM); 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
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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.
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