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eSynergies Signs Letter of Intent to Acquire Salesmation And It
eSynergies Signs Letter of Intent to Acquire Salesmation And Its Subsidiaries
for $45 million
SANTA BARBARA, Calif., Jan. 8 /PRNewswire/ --
eSynergies, Inc. (OTC Bulletin Board: ESYG) announced today that it has
signed a letter of intent to acquire 100% of the outstanding shares of
Salesmation and its group of companies for a minimum of $45 million in stock.
Upon completion of this transaction, eSynergies will become a next generation
e-business application service provider (ASP) offering a Web-based plug-n-play
platform to integrate and automate old economy and new economy business
applications without hardware, software, downloads or training.
The Salesmation group of companies include Salesmation, M2(M-squared)
Limited and CommerceSwitch. The three companies have audited consolidated
revenues of just under $5,000,000 for the last fiscal year. With almost no
debt and two of three divisions being cash flow positive, the combined
companies have a clear path to profitability over the next 12 months. "The
Salesmation group of companies have built cutting edge automation technologies
in the Business-to-Business (B2B) infrastructure, Customer Relationship
Management (eCRM) and Globalization industries," said Thomas Ronk,
Salesmation's Chairman. With only $4,000,000 in investment capital
Salesmation attained nearly $5,000,000 in revenues in its first year as a
consolidated company. "We have a proven business model that is scalable for
rapid growth and expanding profit margins," he added.
After the acquisition is complete, eSynergies will boast over 800 clients
worldwide, including the Government of South Africa, Sabre, American Airlines,
U.S. Department of Commerce, DoubleClick, Quiksilver, Canon, Smith Kline
Beecham, Enterprise Rent-a-Car, Bulk Register.com, Eprise and United Airlines.
Partnerships include Blaze Software / Brokat, iLux, Saqqara, Acxiom, Crunchy,
InfoUSA, NetCreations and WebTrends.
This new application integration service provider platform allows
eSynergies to compete across multiple industries. Research from Jupiter
Communications and IDC states that the B2B transaction market will exceed
$6 trillion, $4 trillion of which will require globalization services due to
transactions occurring outside the United States. Outsourcing technology to
Application Service Providers (ASPs) will represent a growing share of the
$99 billion Internet Services and $177 billion Outsourcing markets. Online
advertising revenues are expected to reach $28 billion, CRM will approach
$12.1 billion and e-mail marketing will grow to $7.3 billion over the next
four years.
"In order to take advantage of this overwhelming growth, businesses must
begin to incorporate Internet strategies throughout their procurement and
sales processes, translate and globalize their Web sites into multiple
languages and invest in multiple selling models to penetrate worldwide markets
and protect market share," said Marcy Engelbrecht, President of eSynergies.
The Salesmation ASP includes powerful eCRM capabilities combined with
recent breakthroughs in rules engine technology to enable businesses to
connect brick and mortar back office applications to major e-business
applications using pre-built adapters. Business managers can design and
execute complex advertising, marketing and sales campaigns based on online
click stream, offline demographic and all types of legacy database
information. Business logic can be entered into the system from the
Salesmation Web site and users can automate most any business process without
the help of programmers or IT staff. By integrating multiple disparate data
sources and automating best business practices, Salesmation provides the
platform necessary to leverage existing IT infrastructure to break the cost
barrier of next generation Internet applications.
M2 Limited has been providing translation and globalization services for
over 20 years and will complement the eSynergies ASP platform by providing
language translation and globalization in 48 languages. M2 helps companies
leverage content from multiple sources by automating the exchange of data
between multiple applications, formats and character sets. After the
acquisition is complete, M2 will provide an open integration framework
providing a collaborative environment that increases productivity by allowing
translators worldwide the ability to view and edit dynamic content as it
appears on the Web page, a critical necessity in globalizing database-driven
sites. This will enhance M2's ability to localize its customers' Web sites
through more efficient project management of global resource allocation.
CommerceSwitch markets and sells a Web-based content management and B2B
exchange ASP service that converts product catalogs into XML and automates the
submission of those products into any of the major B2B exchanges and net
markets. By transforming, managing and exchanging product content,
CommerceSwitch provides a complete product management and exchange solution
that drives increased sales and buyer loyalty throughout the e-commerce
channel. Its B2B supplier solution aggregates and integrates digital product
content, maintains accurate and up-to-date product information and delivers
content in any format (XML, cXML, xCBL, CIF, RosettaNet, etc) by automating
the submission of products into Ariba and CommerceOne powered B2B exchanges
and net markets.
By leveraging a company's existing infrastructure investment and valuable
technical assets, the eSynergies ASP platform can transform an organization
into an intelligent enterprise with powerful strategic competitive advantages.
This press release contains statements which may constitute
"forward-looking statements" within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended by the Private Securities
Litigation Reform Act of 1995. Those statements include statements regarding
the intent, belief or current expectations of eSynergies, Inc. and members of
its management as well as the assumptions on which such statements are based.
Prospective investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties,
and that actual results may differ materially from those contemplated by such
forward-looking statements. Important factors currently known to management
that could cause actual results to differ materially from those in
forward-statements include fluctuation of operating results, the ability to
compete successfully and the ability to complete before-mentioned
transactions. The Company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results.
For more information, please contact: Marcy Engelbrecht at 800-828-8183,
email marcy@esynergies.com or visit www.esynergies.com; or Thomas Ronk at
800-715-9999, email tronk@salesmation.com or visit www.salesmation.com.
SOURCE eSynergies, Inc.
-0- 01/08/2001
/CONTACT: eSynergies, Inc., Investor Relations, 800-828-8183/
/Web site: salesmation.com
esynergies.com |
