Great news for MMWW longs!!!
Announced intent to IPO 20% of eBusiness unit and spin off another.
Metamor Announces Plan to Sell Up to 20% of E-Business Unit in IPO; And Divest Project Support Unit
Engages Morgan Stanley Dean Witter as Financial Advisor
HOUSTON, May 23 /PRNewswire/ -- Metamor Worldwide, Inc. (Nasdaq: MMWW - news), announced today that its Board of Directors unanimously approved a plan to sell up to 20 percent of the company's eBusiness unit (formerly Metamor Consulting Solutions) to the public. This unit is expected to generate 1999 revenues of approximately $140 million. The board also approved a plan to sell the company's project support business. This business generated revenues of $483 million in 1998 and will be reported as discontinued operations in the company's financial results. Management expects to complete these transactions before the end of 1999.
Proceeds from these transactions will be used to reduce the company's outstanding bank debt, thereby providing additional capital to fund the company's future growth.
As a result of these initiatives, Metamor will be a pure-play IT solutions business with estimated 1999 pro forma revenues in excess of $750 million. Metamor will be comprised of five IT solutions business units and an 80 percent interest in the eBusiness unit. Management expects the sale of up to 20 percent of the eBusiness unit will enhance shareholder value by unlocking the value of that unit.
Michael T. Willis, chairman and chief executive officer, said, ''We believe the company's stock is currently undervalued and does not reflect the full value of our solutions units. By selling 20 percent of our eBusiness unit and selling our project support business, we will establish a pure-play, high-growth IT solutions business that should be highly attractive in the marketplace. Additionally, by establishing an independent, publicly traded company, we will be able to provide a pure-play investment option in the rapidly growing Internet consulting sector.''
Commenting further, Willis stated, ''As separate, publicly traded companies, Metamor and the eBusiness unit will be able to focus on their respective customers, complete the integration of their businesses and maximize results. The separate capital structures will also permit the companies greater flexibility in raising capital to execute their growth strategies. Further, in a talent-rich business, each company will be able to retain and incent their employees with equity in their respective businesses.''
Regarding the sale of the project support unit, Willis stated, ''We will be selective in the divestiture process. We will look for a buyer who will provide our talented management and employees attractive career opportunities and effectively capitalize on project support's excellent customer base and cash generation capability.''
Metamor's eBusiness unit provides integrated eBusiness strategy and technology implementation services to clients who are creating eBusinesses or are expanding their existing businesses to integrate eBusiness capabilities. These services include strategy consulting, customer experience design, systems architecture, and application and technology infrastructure development. The eBusiness unit delivers reliable, robust, secure and scalable eBusiness systems in a rapid time frame. It currently has 1,100 consultants and operates through five development centers.
A brief description of the company's other business units follows:
Enterprise Solutions. This unit provides a comprehensive range of enterprise resource planning (ERP) services from ERP package implementation, operations outsourcing (''Web Hosting''), business process transformation, change management and training and educational services using SAP, PeopleSoft, Oracle and Baan. This unit is expected to account for 19 percent of the company's 1999 pro forma revenues.
Industry Solutions. This unit provides value-added technology applications, process improvement and unique business solutions to customers by industry. Comprehensive vertical industry expertise is deployed through a network of industry subject matter experts. This unit is expected to account for 32 percent of the company's 1999 pro forma revenues.
Global Solutions. This unit provides 24-hour application maintenance, code remediation and custom development projects via a global network of technology centers located across the United States and India that are linked through a sophisticated satellite infrastructure. This unit is expected to account for 10 percent of the company's 1999 pro forma revenues.
European Solutions. This unit generally provides IT consulting and ERP solutions services. This unit is comprised solely of Decan, the French-based solutions business that was recently acquired by the company. This unit is expected to account for 10 percent of the company's 1999 pro forma revenues. Software Solutions. This unit provides software engineering in the design, development and testing and quality assurance of software products. These services are focused in the digital imaging, business and consumer software, embedded systems and device drivers markets. This unit is expected to account for approximately 7 percent of the company's 1999 pro forma revenues.
The company has engaged Morgan Stanley Dean Witter as its financial advisor in connection with the strategic initiatives announced today. There can be no assurance as to whether any transaction proposed in this press release will be completed. This press release is not an offer to sell or a solicitation of an offer to buy any securities. Any such offering will be made only by means of a prospectus.
Morgan Stanley Dean Witter is a global financial services firm and a market leader in securities, asset management, and credit and transaction services. The Company has offices in New York, London, Tokyo, Hong Kong and other principal financial centers around the world and has 450 securities branch offices throughout the U.S.
Metamor Worldwide offers customers a broad range of information technology solutions including eBusiness, ERP implementation, software engineering, application support outsourcing, project support, training and technical documentation. With offices across the U.S. and abroad, Metamor's flexible delivery of value-added services is provided through a combination of geographic presence, industry focus and specialized technology practices.
Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. Although the company has used its best efforts to be accurate in making those forward-looking statements, it is possible that the assumptions made by management may not materialize. In addition, the information set forth in the company's Form 10-K for the fiscal year ended December 31, 1998, describes certain additional risk and uncertainties that could cause actual results to vary materially from the future results covered in such forward-looking statements.
For further information regarding Metamor Worldwide, Inc. free of charge via fax, dial 1-800-PRO-INFO and enter ''MMWW.''
Metamor Worldwide, Inc. can be reached on the Internet at metamor.com .
SOURCE: Metamor Worldwide, Inc.
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