TeleTech Agrees to Acquire Newgen Corp. for $200 MillionTeleTech Holdings Inc., Denver, said yesterday that it agreed to acquire Newgen Corp., San Diego, in a stock-for-stock transaction valued at about $200 million.
TeleTech, a provider of outsourced contact-center services, said the acquisition would strengthen its customer relationship marketing capabilities and would broaden its client base. Newgen specializes in providing business-to-business marketing solutions to the automotive industry among dealers, manufacturers, suppliers and others. It also creates direct mail and telemarketing solutions for dealers to attract and retain customers.
TeleTech said it would seek to leverage Newgen's business-to-business expertise and technology by applying it to other industries, such as telecommunications, financial services, transportation, technology and healthcare. TeleTech also said it planned to expand Newgen's automobile-industry services globally.
Under terms of the agreement, TeleTech will pay $18 per share for each of Newgen's 10.5 million common shares outstanding. Each share of Newgen will be exchanged for an unspecified number of shares of TeleTech stock, based on the average price of TeleTech stock prior to the closing of the acquisition.
The transaction, which has been approved by the boards of directors of both companies, is subject to a Newgen shareholder vote, regulatory approvals and other conditions. It is expected to close in the fourth quarter.
Newgen, which had profits of $4.7 million on revenues of $39.8 million in the first half of this year, will operate as an independent entity within TeleTech.
TeleTech is one of the largest providers of Web-enabled customer care in the world, with about 15,300 multimedia workstations at 35 contact centers in several countries.