“Pan European Customer Relationship Management Partnership Between Atos Origin and SNT”
Paris/Amsterdam - 17 July, 2001
Atos Origin, a leading European information technology services provider, and SNT, a European supplier of Customer Relationship Management (CRM) services, today announced that they have signed a letter of intent under which the two companies will enter into a partnership agreement. Under that agreement SNT will acquire the customer contact operations of Atos Origin in France in several stages, as described below. Atos Origin operates 8 customer contact centres in France, which are expected to generate total revenues of approximately EUR 100 million in 2001 and currently employ over 2,500 staff. In addition, a strategic alliance will be developed between the two companies.
Under the terms of the letter of intent, Atos Origin will sell its French customer contact centre operations (the Operations) to SNT in several stages, as follows :
Between completion of the agreement and 31 December 2001, SNT will acquire in total 55% of the Operations for a consideration of approximately 1.54 million SNT shares (equivalent to EUR 23 million at the listed reference price of EUR 14.90 per share at the date of signing the letter of intent) and EUR 20 million, payable in cash.
On or before 28 June 2002, SNT will acquire a further 25% stake in the Operations for a consideration of EUR 22 million, payable either in cash or in SNT shares (valued at the listed reference price of EUR 14.90 per share at the date of signing the letter of intent), at SNT's election.
At 31 December 2003, SNT will acquire the remaining 20% stake in the Operations for EUR 5 million in cash plus an earn-out based on the financial performance of the Operations in calendar 2003.
The maximum consideration payable by SNT to Atos Origin under the terms of the agreement will be EUR 78 million (for 100% of the Operations). The transaction remains subject to social consultation and regulatory approval and is expected to complete by no later than 30 September 2001. After closure, and subject to the approval of the shareholders of SNT, Bernard Bourigeaud, Chairman and Chief Executive of Atos Origin, will join the Supervisory Board of SNT.
There is a growing need to provide customer contact centre resources on a pan-European basis to support customers in their global CRM programs. Atos Origin and SNT believe that they have highly complementary skills relating to the field of CRM and will therefore enter into a close strategic relationship wherein each company will promote the specialist services and resources of the other.
Within this alliance, Atos Origin will focus its CRM activities on designing, building and running dedicated CRM programs for large accounts, using state-of-the-art CRM software systems and integrating these with the core back office systems of its large customers.
For SNT the acquisition of Atos Origin's customer contact centre business is a major step in its strategy to become the leading European provider of CRM outsourcing services. Following the acquisition, SNT will have expanded its footprint to 8 European countries, become the leader in the French (inbound) CRM market and obtained a strong strategic partner, enhancing its ability to provide true pan-European CRM services to multinational customers.
SNT has also announced today an agreement in principle to acquire substantial CRM call centre resources, conferencing activities, distribution channels and consultancy services from KPN, the Dutch telecommunications company. Through the two separate transactions SNT will significantly improve its ability to capture a growing share of the rapidly increasing European CRM market, both by supporting the in-house activities of its clients and by attracting new contracts.
Bernard Bourigeaud, Chairman and Chief Executive of Atos Origin, commenting on the agreement with SNT said :
" I am pleased that we have been able to reach agreement with SNT, who clearly have extensive knowledge, experience and resources in operating customer contact centres, and a substantial presence across Europe. Through this partnership we will have a comprehensive offering for CRM and will be better able to serve our customers. The customer contact centre employees will benefit from new expertise and deployment capabilities at the European level. I am proud to be associated with this new venture as a nominated supervisory board member of SNT "
Tobias Walraven, President and Chief Executive of SNT, added :
"We believe that combining the assets of KPN and Atos Origin in SNT creates the new leader in the European CRM market. Atos Origin holds a key position in the high potential French market. With the full support of the board members of Atos Origin we are pleased to announce today that SNT has taken a major step in its stated strategy of becoming the preferred pan European service partner for multinational customers".
About Atos Origin
Atos Origin, a leading European information technology services provider, helps clients turn their vision into results through the effective use of e-business solutions and IT. With sales of more than EUR 2.8 billion in 2000, Atos Origin currently operates in more than 30 countries worldwide and has 27,000 employees. Its clients include ABN-Amro, Akzo-Nobel, Saudi Aramco, BNP Paribas, Cegetel/Vivendi, Credit Lyonnais, Euronext, Fiat, ICI, Lucent Technologies, Philip Morris, Philips, Shell, Unilever and Wolters Kluwer.
SNT implements CRM projects for its clients in its customer contact centers by making telephone, e-mail and co-browsing available to its customers. By using data-mining techniques, management information can be distilled from the customer contacts and used by clients to enrich their marketing strategy, as well as to build up sustainable relations with customers. The customer list of SNT includes ABN-AMRO, Achmea, Aegon, Allianz, Aok Sachsen, AXA, Cisco, Dell, E-Bogalet, Eniro, E-Plus, Fortis, IBM, ING, JPG, KPN, Microsoft, Dutch Rail, Norska Bokklubbarna, Philips, PMG, Postbank, Readers Digest, Schmidt Bank, Stofa, Telfort, Telia, Unigraphics, Unilever, UPC, Quelle Verischerung.
In 2000, SNT realised a turnover of EUR 99.4 million and EBITDA of EUR 19.0 million.
For more information, visit the company's web site at www.snt.com.
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