RR Donnelley Agrees to Acquire OfficeTiger; Acquisition Expands Global Business Process Outsourcing Capabilities
March 19 2006 - 11:30PM
PR Newswire (US)
CHICAGO, March 20 /PRNewswire-FirstCall/ -- R.R. Donnelley &
Sons Company (NYSE:RRD) announced today that it has signed a
definitive agreement to acquire OfficeTiger, a leading provider of
business process outsourcing (BPO) services, in an all-cash deal,
for approximately $250 million. The agreement is subject to
customary closing conditions, including regulatory approval, and is
expected to close this spring. This is RR Donnelley's second
acquisition of a leading BPO provider in less than a year. In June
of 2005 RR Donnelley concluded its acquisition of Astron, a
UK-based BPO supplier with resources in Europe, India and Sri
Lanka. OfficeTiger's superb transaction processing services are
closely related and complementary to RR Donnelley's existing
document-based outsourcing resources. In concert with Astron,
OfficeTiger will enable RR Donnelley to expand its already deep
relationships with Fortune 500 companies in both the US and Europe.
OfficeTiger, headquartered in New York, provides integrated onsite-
offshore BPO services to Fortune 500 companies and to professional
services firms through its operations in North America, Europe,
India and Sri Lanka. Its judgment-based outsourcing solutions
address a variety of needs for vertical segments that include
financial services, publishing, manufacturing, transportation,
telecommunications, healthcare, advertising, and more.
OfficeTiger's services include sophisticated financial analysis and
reporting, desktop publishing, creative services, word processing,
credit analysis, claims processing, litigation support, market
research, database services, managing creative services for output
and more. OfficeTiger has an established sales organization with a
broad presence in the United States that is expected more quickly
to enable RR Donnelley to expand its deep relationships with North
American customers to include more BPO services. "Having been a
customer of OfficeTiger's for several years, we are pleased to
announce this acquisition as the logical next step in building our
global BPO business," said Mark A. Angelson, RR Donnelley's Chief
Executive Officer. "OfficeTiger's broader financial management,
research and analytics, marketing-related resources and other
knowledge-based capabilities enhance RR Donnelley's offering in the
fast-growing, higher return BPO segment. Although this acquisition
will be mildly dilutive to earnings in 2006 only, we expect that
together we will realize cost efficiencies and significant
cross-selling opportunities and that our non-GAAP EPS still will be
in the range of our previous guidance." OfficeTiger was founded by
Randolph Altschuler and Joseph Sigelman, both of whom will remain
as co-Presidents of OfficeTiger and assume additional
responsibilities within RR Donnelley. "RR Donnelley is an ideal
partner for OfficeTiger," said Sigelman. "RR Donnelley and
OfficeTiger both work to foster cultures that emphasize deep
commitments to performance and client satisfaction." Altschuler
added, "We believe that RR Donnelley's strong relationships with
customers in key vertical segments will strengthen our sales
program, creating opportunities for growth and development of our
employees in the United States and abroad." About RR Donnelley RR
Donnelley (NYSE:RRD) is the world's premier full-service provider
of print and related services, including document-based business
process outsourcing. Founded more than 140 years ago, the company
provides solutions in commercial printing, direct mail, financial
printing, print fulfillment, forms and labels, logistics, call
centers, transactional print-and-mail, print management, online
services, digital photography, color services, and content and
database management to customers in the publishing, healthcare,
advertising, retail, technology, financial services and many other
industries. The largest companies in the world and others rely on
RR Donnelley's scale, scope and insight through a comprehensive
range of online tools, variable printing services and
market-specific solutions. For more information, visit the
company's web site at http://www.rrdonnelley.com/. About
OfficeTiger OfficeTiger is a global professional support services
firm offering industry-focused, judgment-based services that
support core functions of its clients in real time. One of the
largest diversified BPO solution providers, OfficeTiger has four
main lines of business, including Research & Analytics,
Premedia, Financial Management and Transaction Processing Services.
OfficeTiger creates, processes, and distributes mission-critical
information for the world's largest investment banks, diversified
financial institutions, legal firms, publishing houses, retail
chains and Fortune 500 companies. Headquartered in New York City,
OfficeTiger has operations in the UK, Germany, India and Sri Lanka.
For more information, visit the company's web site at
http://www.officetiger.com/. Use of Forward-Looking Statements This
news release may contain "forward-looking statements" as defined in
the U.S. Private Securities Litigation Reform Act of 1995. Readers
are cautioned not to place undue reliance on these forward-looking
statements and any such forward-looking statements are qualified in
their entirety by reference to the following cautionary statements.
All forward-looking statements speak only as of the date of this
news release and are based on current expectations and involve a
number of assumptions, risks and uncertainties that could cause the
actual results to differ materially from such forward-looking
statements. Readers are strongly encouraged to read the full
cautionary statements contained in RR Donnelley's filings with the
SEC. RR Donnelley disclaims any obligation to update or revise any
forward-looking statements. DATASOURCE: R.R. Donnelley & Sons
Company CONTACT: Media: Doug Fitzgerald, Senior Vice President
Marketing & Communications, +1-630-322-6830, , Investor: Dan
Leib, Vice President, Investor Relations, +1-312-326-7710, Web
site: http://www.rrdonnelley.com/ http://www.officetiger.com/
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