Mosaic Group Closes Investment In Intelecom Systems
TORONTO, ONTARIO--Mosaic Group Inc. (TSE: MGX), Canada's leading
outsourced marketing services agency, announced today that it has
closed the 20% investment in Intelecom Systems Inc. that was
announced in May 1999. Consideration for the investment is a $4
million USD treasury investment in Intelecom as well as providing
a 25% interest in Mosaic's e-commerce subsidiary, eForce Inc. to
be held by Intelecom. The partnership creates a unique
transactional e-commerce service proposition that is especially
attractive to clients in highly competitive or mature sectors
where increasing market share and retaining customers are
difficult. Intelecom plans to use the Mosaic investment to
further expand its product offerings.
Intelecom is an information technology services company that
provides sophisticated comparison billing technology to several
clients in the telecom and utilities industries, such as MCI
Worldcom, Bermuda Telephone Company, BT Cellnet, as well as
eForce. eForce and Intelecom combined will generate over $40
million in revenue in 2000 and are expected to generate combined
pre-tax margins in excess of 15%.
The backbone of Intelecom's technology is a rating and billing
engine that allows the application of sophisticated billing
methods to volume-intensive industries, such as
telecommunications. eForce partnered with Intelecom in 1998 to
create the CIBC Guaranteed Proof Program, a long distance program
that tracks and rates each customer's monthly usage against the
top three telephone companies in Canada and bills the subscriber
on their CIBC VISA credit card for the lowest total. This program
is being used as a model to introduce innovative marketing
solutions for other Mosaic clients.
"We are excited about the significant progress we are making in
developing our e-commerce platform - a platform which is
profitable. By partnering with Intelecom, we bring a unique
service proposition to our clients. The cross-ownership of
Intelecom and eForce will be instrumental in the development of
our e-commerce platform as we continue to invest in technology
solutions that will keep our clients in the forefront of their
industries," said Michael Preston, Chairman and CEO of Mosaic
Group.
Mosaic Group Inc., with operations in the United States, Europe
and Canada, provides outsourced marketing services on an
integrated basis to leading corporations serving international
markets. Mosaic combines strategic thinking with leading-edge
technologies to effectively deliver immediate and measurable
results for its clients. Marketing solutions include electronic
marketing, e-commerce, new media services, contract sales,
merchandising, field marketing, direct marketing, database
development and management, product promotion, corporate
communications and sales force training. Mosaic, which has
approximately 71 million shares outstanding, trades on the TSE
under the symbol MGX.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Mosaic Group Inc.
Ben W. Kaak
EVP & CFO
(416)813-4272
www.mosaicgroupinc.com
or
Catherine Linley
Public Relations
(416)813-4277 |
