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Anacomp and First Data Finalize Transfer of First Image Management Company Anacomp also announces intention to sell DAS and DPDS business units
SAN DIEGO and HACKENSACK, N.J., June 18 /PRNewswire/ -- Anacomp(R), Inc. (Nasdaq: ANCO) and First Data Corporation (NYSE: FDC) today announced the completion of Anacomp's purchase of First Image Management Company, a division of First Data Corporation. Anacomp additionally announced its intention to sell two of First Image's business units to third parties.
Anacomp financed the $150 million purchase price through the successful placement of an additional $135 million offering of its 10 7/8% Senior Subordinated Notes, which were priced at 104%, plus available cash reserves.
First Image is a leading provider of COM (Computer Output to Microfilm) services, a business synergistic with the COM, CD, and Internet solutions offered by Anacomp through its nationwide network of service centers. As a result of the acquisition, Anacomp will gain entry into 20 new markets in the United States. Anacomp also provides its customers with information management consulting services, analog and digital systems, and comprehensive maintenance and technical support.
"We're extremely pleased to welcome First Image clients and associates to Anacomp," commented Anacomp President and Chief Executive Officer Ralph W. Koehrer. "The addition of First Image's COM services business significantly expands our presence in the marketplace, as well as providing us with opportunities to improve our service offerings, enhance the value of what we offer to customers, and increase our efforts to offer clients a migration path to newer technologies."
"First Data has taken another key step which strengthens the company's position for continued leadership in our critical set of interrelated businesses," said Ric Duques, chief executive officer of First Data Corporation. "The completed divestiture of our imaging business sharpens management's focus on the company's single strategic objective - to help make electronic payments the payment method of choice worldwide."
Anacomp also announced its intention to sell First Image's Document Acquisition Services (DAS) business unit, which provides data entry and capture services, and its Document Print and Distribution Services (DPDS) business unit, which provides print-and-mail and demand publishing services. Anacomp is currently in negotiations with interested third parties, but emphasized that until DAS and DPDS are sold, it expects to operate the two business units as usual without any disruption to clients or employees.
Anacomp additionally announced a new $80 million senior secured credit facility arranged by BankBoston Securities Inc. The new facility replaces a $55 million term loan and $25 million revolving facility, and it offers Anacomp greater financial flexibility, a lower interest rate, and a longer maturity.
Hackensack, N.J.-based First Data Corporation is a global leader in payment systems, electronic commerce, and information management products and services. First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit, or smart card at the point of sale or over the Internet, by check, or by wire money. For further information about First Data, please visit the company on the Internet at www.firstdatacorp.com.
Serving customers throughout the world, Anacomp provides products and services that manage corporate information throughout its life cycle. For more information about Anacomp, please visit the company's web site at www.anacomp.com. |
