(BSNS WIRE) infoUSA To Purchase Donnelley Marketing From First Data Corp
infoUSA To Purchase Donnelley Marketing From First Data Corporation -- First
Data Corporation's President & COO to Join infoUSA Board
Business Editors
OMAHA, Neb.--(BUSINESS WIRE)--June 1, 1999-- infoUSA (NASDAQ:
IUSAA) (NASDAQ: IUSAB), a leading provider of proprietary business
and consumer databases and database processing services, today
announced that it has entered into a definitive agreement to purchase
Donnelley Marketing, a division of First Data Corporation (NYSE:
FDC), for approximately $200 million in cash. In addition, infoUSA
will enter into a long-term strategic relationship with First Data.
Donnelley Marketing has been in operation for over 75 years, and is a
leading consumer database and database marketing company with annual
revenues in excess of $90 million.
Since the acquisition will be accounted for under purchase
accounting rules, the transaction will include the addition of
roughly $200 million of goodwill which the company plans to amortize
over approximately 15 years. It is anticipated that the acquisition
will significantly increase EBITDA (earnings before interest, taxes,
depreciation and amortization) on an annual basis, enhance cash
flow and contribute positively to pro forma earnings per
share, excluding the impact of the amortization of goodwill and
other write-offs. infoUSA will use a combination of existing cash
resources and borrowings from a syndicate of commercial banks to
finance the acquisition.
Additionally, as part of a series of long-term licenses, infoUSA
will provide certain First Data Corporation subsidiaries with
consumer and business database content and data processing services.
The closing of the transaction is subject to customary conditions,
including Hart-Scott-Rodino antitrust clearance, and receipt by
infoUSA of bank financing. infoUSA has received a financing
commitment letter, subject to certain conditions, from Bankers Trust
Company who will lead a syndicate of banks as administrative agent
for the financing. The closing is expected to take place in July
1999.
Vinod Gupta, infoUSA's chairman and chief executive officer, said,
"This is a defining event for infoUSA. There are many benefits that
will result from combining infoUSA and Donnelley Marketing as well
as our strategic alliance with First Data Corporation. First Data
will be able to rely on our high quality databases as well as our
expertise in data compilation and marketing. Donnelley Marketing
will add significantly to our presence in consumer database and
database marketing operations. infoUSA will have the leading
franchise in business and consumer content and data processing
services, providing the combined company with the unique strategic
opportunity to leverage our strength across all three areas and to
be a leader in emerging distribution channels, including the
Internet.
"We believe that there are many operating synergies, including
leveraging our combined sales force to cross-sell a wider range of
products to an expanded customer base. The complementary nature of
infoUSA and Donnelley Marketing will result in financial benefits
for the combined company as we provide more solutions, sophisticated
data processing services, and enhanced value to our customers. This
is a prime example of the whole being greater than the sum of the
parts," Gupta added.
"One of Donnelley Marketing's strengths has been their dedicated
employees and we welcome them to the infoUSA family. Donnelley
Marketing will comprise approximately 30 percent of infoUSA's
revenues, and strengthen our platform for delivery of database
compilation, marketing, and data processing. We also welcome
Charlie Fote, First Data's president and chief operating officer, to
the infoUSA Board of Directors following the close of the
transaction. Charlie's leadership and experience as both a consumer
and provider of database content will make him an invaluable asset
to the company," concluded Gupta.
Fote said, "This new relationship makes strategic sense for each of
the companies, and, most important, our clients." As part of the
transaction, First Data will become a major customer of infoUSA's.
"Information continues to be an important part of First Data's overall
strategy to provide value-added services to clients. By combining
the complimentary database services of Donnelley Marketing with
infoUSA, and developing a long-term partnership with infoUSA, we are
enhancing our access and ability to use information on our client's
behalf," remarked Fote.
"First Data is an organization focused on the future. That future
includes maximizing success in key areas that present the best
strategic and financial opportunities. It also requires investing
resources in those businesses our clients have come to depend on us
for e-commerce solutions, transaction processing and electronic
payment services," explained Fote.
It is anticipated that revenue enhancements will result from the
cross-selling of Donnelley's consumer data and infoUSA's business
data and data processing services. In addition, infoUSA anticipates
cost savings resulting from the elimination of duplicate database
sources and database creation processes as well as the integration of
data centers.
infoUSA, www.infoUSA.com, is the leading provider of business and
consumer information products and data processing services. The
infoUSA databases power the directory services of the top
traffic-generating Internet sites including InfoSpace (Nasdaq: INSP),
Yahoo! (Nasdaq: YHOO), Microsoft (Nasdaq: MSFT) and AOL (NYSE: AOL).
The company has partnership agreements with several Internet
companies, including Mapquest.com (Nasdaq: MQST), DoubleClick
(Nasdaq: DCLK), Network Solutions (Nasdaq: NSOL), Dell (Nasdaq: DELL)
and Zip2 (a division of Compaq). Nearly two million of the company's
customers use the products and services for direct marketing,
telemarketing, marketing planning, lead generation, sales planning,
customer analysis and credit reference. Founded in 1972, the
company's headquarters are 5711 South 86th Circle, PO Box 27347
Omaha, Neb., 68127-0347. infoUSA Inc. can be contacted at (402)
593-4500.
Atlanta-based First Data Corporation is a leader in electronic
payment 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 stored-value card at the
point-of-sale, over the Internet, by check or by wire transfer.
With 32,000 employees worldwide, the company serves clients
throughout the United States, the United Kingdom, Australia, Mexico,
Spain and Germany. Its Western Union network includes more than
55,000 locations with operations in 160 counties. For more
information on First Data, please visit the company web site at
www.firstdatacorp.com.
Statements in this announcement other than historical data and
information constitute forward looking statements that involve risks
and uncertainties that could cause actual results to differ materially
from those stated or implied by such forward-looking statements. The
potential risks and uncertainties include, among others, ability to
consummate the acquisition of Donnelley Marketing; the successful
integration of Donnelly Marketing into infoUSA, ability to achieve
cost savings and synergies, ability to retain key employees, effects
of leverage, changes in technology and increased competition.
--30--eb/ny*
CONTACT: Vinod Gupta, Chairman and CEO
infoUSA
Phone: (402) 596-8900 Fax: (402) 339-0265
E-mail: vin@infousa.com
OR
Joele Frank, Public/Investor Relations
Abernathy MacGregor Frank
Phone: (212) 371-5999
E-mail: jf@abmac.com
KEYWORD: NEBRASKA
INDUSTRY KEYWORD: PUBLISHING COMED
INTERACTIVE/MULTIMEDIA/INTERNET MERGERS/ACQ
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