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Monday January 8, 6:00 am Eastern Time
Press Release
eSynergies Signs Letter Of Intent To Acquire Salesmation And Its Subsidiaries For $45 Million
INTERNET WIRE -- eSynergies, Inc. (OTC Bulletin Board: ESYG - news) 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 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.
Contact:
Thomas Ronk
Salesmation
800-715-9999
tronk@salesmation.com
Marcy Engelbrecht
eSynergies
800-828-8183
marcy@esynergies.com |
