Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mosaic Group (MGX.TO) -- Ignore unavailable to you. Want to Upgrade?

To: sPD who wrote (37)	11/19/1999 8:06:00 AM
From: sPD	Respond to of 67

Mosaic Expands Prudential Contract To $180 Million NOVEMBER 19, 1999 TORONTO, ONTARIO--Mosaic Group Inc. (TSE: MGX), Canada's leading outsourced marketing services agency, announced today that it has expanded its largest ever outsourcing contract for Prudential PLC, the United Kingdom's leading insurance company, to a 7-year term, valued at $180 million. Previously the agreement covered 5 years and was valued at $150 million. Prudential will outsource the cash collection of insurance premiums to Mosaic Group. The contract is expected to generate $35 million to $40 million in revenue for Mosaic in its first year. The collections will be made by the direct-to-consumer field service force of FMCG Home Service, a subsidiary of Mosaic Group. Beginning in the first quarter of 2000, on behalf of the Prudential, FMCG Home Service will operate from a base of over 700 field representatives managed by 60 head office personnel. In addition to the cash collection contract, in October 1999, Prudential awarded Mosaic a 5-year outsourcing contract to sell non-regulated general insurance products. Mosaic will engage a 200 person dedicated sales force to execute the contract, which is expected to generate $80 million over five years. Taken together, the agreements mean that the Prudential now has contracted for $260 million in outsourced services from Mosaic over the next 7 years. "We are very pleased with the partnership that we have built with the Prudential," said Michael Cottman, Vice Chairman, President and Chief Operating Officer of Mosaic Group. "The cash collection program is a strategic winner for us. The Prudential contract is just the beginning in our efforts to build a one-to-one marketing business in the U.K. We plan to leverage our field force to be the dominant provider of marketing and sales services directly at the consumer's home. We now have created a new and cost effective channel for companies seeking a very targeted means of reaching the ultimate consumer directly. Direct sales continues to be a proven performer in driving business results. Beyond cash collection and direct sales, we see opportunities in direct-to-consumer marketing and highly targeted data collection and analysis. Our plan in 5 years time is to grow the direct-to-consumer part of our business to over $100 million in annual revenues and to be in direct regular contact with over three million U.K. households." Michael Preston, Chairman and CEO of Mosaic Group said, "This contract represents a further expansion of our strategic partnership with the Prudential in the U.K. Mosaic's expertise and size now affords us the opportunity to pitch and secure long-term, multi-million dollar pieces of business. This contract reinforces the ongoing trend by major companies to outsource significant marketing, sales and customer care functions." Mosaic Group Inc., with operations in the United States, Europe and Canada, provides outsourced marketing services on an integrated basis to leading corporations serving international markets. Mosaic combines strategic thinking with leading-edge technologies to effectively deliver immediate and measurable results for its clients. Marketing solutions include electronic marketing, e-commerce, new media services, contract sales, merchandising, field marketing, direct marketing, database development and management, product promotion, corporate communications and sales force training. Mosaic, which has approximately 71 million shares outstanding, trades on the TSE under the symbol MGX.