Mosaic Group Wins Largest Ever Outsourcing Contract
TORONTO, ONTARIO-- May 10, 2000
Mosaic Group and Information Resources Form Joint Venture To
Provide Field Data Collection, Auditing and Merchandising Services
Mosaic Group Inc. (TSE: MGX), a worldwide leader in outsourced
marketing services, and Information Resources, Inc. (IRIC:
NASDAQ), a leading international market research company,
announced today they have signed a letter of intent to form a
joint venture to provide field data collection, auditing and
merchandising services.
The planned joint venture company, Mosaic InfoForce, will be owned
51% by Mosaic and 49% by Information Resources, Inc. (IRI). Its
board of directors will be made up of senior executives from both
companies. Mosaic InfoForce is expected to begin operations July
1, 2000. As part of the agreement, IRI plans to outsource its
field data collection activity to Mosaic InfoForce for a ten-year
period - an approximate C$50 million annual expense.
The new company is expected to leverage IRI's data collection
organization, with Mosaic's renowned field management processes,
systems and technology to increase service levels, reduce costs
and most importantly, grow revenue in the audit business. Mosaic
will manage the joint venture, and will utilize transitional
central services support from IRI. Most of IRI's current
2,400-person field organization will become employees of Mosaic
InfoForce. This field organization makes approximately 29,000
monthly visits to retail outlets throughout the U.S. to collect
sales and merchandising information for IRI's customers.
"This is a tremendous opportunity for Mosaic for several reasons,"
said Tony LaSorda, Mosaic's Vice Chairman and Corporate
Development Officer, North America. "First, IRI is an outstanding
global partner that is committed to be the market leader in
providing innovative information services. Secondly, our
partnership with IRI will fuel substantial growth in the U.S. for
Mosaic in 2000 and beyond. Thirdly, we see opportunities to
replicate this program in other international markets where IRI
has an established, similar network of market research operations.
Finally, this joint venture enhances Mosaic Group's focus on
becoming the dominant provider of data collection, auditing and
mystery shopping services in North America, where significant
growth exists."
Rick Kurz, IRI's President, Strategic Business Development, said,
"We conducted extensive research for the right partner with which
to develop the growth opportunities we see in the data collection
and auditing aspects of our industry. Our clients are asking for a
variety of services to help make better and more timely business
decisions. By transferring the data collection function to a joint
venture with Mosaic, we will benefit from their expertise in
managing and automating large field teams. In addition, this
planned partnership will allow us to introduce new services to our
clients. Equally important, IRI will also be able to sharpen focus
on our core competencies of tracking retail sales, developing
analytical solutions and leveraging technology to provide
efficient information access and delivery information for our
clients."
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 trades on the TSE
under the symbol MGX.
Information Resources, Inc. is a leading provider of UPC
scanner-based business solutions to the consumer packaged goods
industry, offering services in the U.S., Europe and other
international markets. The Company supplies CPG manufacturers,
retailers and brokers with information and analysis critical to
their sales, marketing and supply chain operations. IRI provides
services designed to deliver value through an enhanced
understanding of the consumer to a majority of the Fortune 500
companies in the CPG industry.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
the business of Information Resources, Inc., which are not
historical facts are "forward looking statements" that involve
risks and uncertainties. We refer you to the documents that
Information Resources, Inc. files from time to time with the
Securities and Exchange Commission. These documents contain and
identify important factors that could cause actual results to
differ materially from those contained in our projections or
forward-looking statements.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Ben W. Kaak
EVP & CFO
Mosaic Group Inc.
(416) 813-4272
kaakb@mosaicgroupinc.com
or
Catherine Linley
Public Relations
Mosaic Group Inc.
(416) 813-4277
www.mosaicgroupinc.com
www.infores.com
or
Susanne Courtney
Public Relations
Courtney Public Relations
(416) 377-0506 |
