Log In | Become a Member | Contact Us

Leading printing executives into the future

Connect on Twitter | Facebook | LinkedIn

Featured:     European Coverage     Production Inkjet Analysis

CSG Systems to Acquire ComTec to Expand Statement Processing Capabilities

Tuesday, June 12, 2007

Press release from the issuing company

June 11, 2007-- CSG Systems International, Inc., a leading provider of customer care and billing solutions, today announced that it has reached an agreement to acquire ComTec, Inc., a privately-held provider of print and electronic statement processing services headquartered in Fairfield, New Jersey.

The acquisition of ComTec builds upon CSG's goal of maximizing customer interaction for clients by expanding its statement processing footprint and capabilities through the addition of enhanced statement production and electronic statement presentation hardware and software technologies, as well as additional plant capacities. CSG believes that these technologies, which include extensive highlight color and cut-sheet printing, will accelerate CSG's ability to offer enhanced functionality to existing and prospective customers. In addition, the acquisition increases CSG's presence in its core video market, as well as in new industry verticals such as telecommunications, home security, healthcare, financial services and utilities.

ComTec employs more than 100 people and processes approximately 10 million billing statements per month for customers throughout the United States, from local businesses to Fortune 500 companies. ComTec has two production facilities, located in New Jersey and Minnesota. CSG currently produces approximately 53 million billing statements per month from its two production facilities in Nebraska and Florida.

"Through this acquisition, CSG builds upon the established operational expertise and core competencies of its Statement Processing Centers," said Pam Sellenrick, senior vice president and general manager of CSG Statement Processing Centers. "We anticipate that ComTec will increase CSG's revenue opportunities by strengthening our position within core video markets, expanding our reach into new industries and enhancing our breadth of statement solutions."

"We are excited to become part of the CSG team, and to combine our technologies and customer relationships with those of CSG," said Peter E. Christensen, ComTec's Chairman and Chief Executive Officer. "I believe that the combination of the two companies' resources and capabilities will provide added value to existing and prospective customers."

Financial Terms and 2007 Guidance Impact

The agreement provides that CSG will acquire ComTec for approximately $23.5 million in cash, to be paid upon closing of the transaction, which is currently anticipated to be in early July, subject to the satisfaction of customary closing conditions. In addition, the merger agreement provides for contingent payments of up to $2.5 million over the next 12 months upon the achievement of certain predetermined operating criteria.

CSG expects the acquisition of ComTec will add approximately $10-$12 million of revenue for 2007, assuming an early July closing. CSG expects to incur certain acquisition-related charges and ongoing amortization of intangible assets related to this acquisition in 2007. Excluding the impacts of these acquisition-related charges, which are not estimatable at this time, CSG does not expect this acquisition will have a material impact on its overall results of operations for the full year 2007.




Email Icon Email

Print Icon Print

Become a Member

Join the thousands of printing executives who are already part of the WhatTheyThink Community.

Copyright © 2016 WhatTheyThink. All Rights Reserved