PICK: PTEK @ 7
Premiere Technologies, Inc. provides Web-based & telephone communications services, including unified messaging, e-mail by phone, enhanced calling card services, voice and data messaging, conferencing & fax distribution.
Revenues = 426 million
Market Cap = 329 million
47 mm shs/ 39.40 mm shs float
The game plan going forward appears to be to spin-off
the operating businesses and keep PTEK-ventures
which is a CMGI/ICGE/SFE type play .. they certainly
have the $$$ and know-how in light of their successes
with HLTH/SONE/VERT ..
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Monday November 1, 12:07 pm Eastern Time
Company Press Release
Premiere Technologies Pursues Plans to Spin Off Web-Related Assets
PTEK to Sell Retail Calling Card Business
ATLANTA--(BUSINESS WIRE)--Oct. 28, 1999-- Premiere Technologies, Inc. (NASDAQ: PTEK - news; www.premtec.com) today announced plans to sell its retail calling card business and to explore spinning off its Web-related assets within three market categories: Unified Messaging, Internet Document Delivery, and Web Conferencing. Premiere's executive management team has spent the last few months working with Gleacher & Co., a strategic advisory firm specializing in mergers and acquisitions, to review its business units and develop its strategic plan.
``We believe the market places more value on pure Internet plays and we believe our strategy will enable Premiere to realize greater shareholder value more quickly,' said Boland T. Jones, founder, chairman and CEO of Premiere Technologies. ``Premiere plans to create three new PTEKVentures.com-type companies using its own assets. We don't believe there's an established leader in any of these Web-related, business-to-business categories, which gives us the opportunity to assume that leadership, either as stand alone Internet ventures or through strategic mergers or relationships with other Internet players.'
The Web-based business-to-business categories targeted by PTEKVentures.com are projected to grow dramatically, each representing a multi-billion dollar market opportunity.
``We believe that Premiere Technologies will benefit from these strategic initiatives,' said Eric Gleacher, chairman and CEO, Gleacher & Co. ``Boland Jones has a proven track record making smart Internet investments which is reflected in the value of the PTEKVentures.com portfolio.'
PTEKVentures.com, Premiere's investment arm, or a similar Premiere entity, will become the holding company for these Internet-related businesses. PTEKVentures.com currently has a diverse portfolio of Internet-related companies that includes investments which offer distribution opportunities and technology enhancements or solutions for other Premiere services. The PTEKVentures.com portfolio includes WebMD, VerticalOne, USA.NET, Webforia and Derivion.
``As the new business units become members of the PTEKVentures.com family, we can leverage the technologies, distribution opportunities and investments and extend our services to the growing Internet world,' said Jones. ``We plan to develop strategic partnerships and pursue private investment opportunities to give these business units their deserved value. PTEKVentures.com would maintain a large interest in these companies, allowing operations to be handled at the business unit level, which will improve our efficiencies.'
About Premiere Technologies
Atlanta-based Premiere Technologies, Inc. (NASDAQ: PTEK - news) provides innovative solutions to simplify communications by combining the power of Internet with the reach of the telephone. Founded in 1991, Premiere has operations in 32 countries.
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Progress towards the goal ..
Premiere Technologies to Pay Off $143 Million Short-term Debt
PTEKVentures.com Funds Debt Payoff for Holding Company
ATLANTA--(BUSINESS WIRE)--Dec. 7, 1999-- Premiere Technologies, Inc. (NASDAQ: PTEK)(www.premtec.com) announced today that it has arranged to pay off its $150 million short-term credit facility. Premiere benefited from its PTEKVentures.com investment arm by monetizing a portion of its holdings in Healtheon/WebMD (NASDAQ: HLTH) during the past two weeks to pay off this debt. Premiere continues to own approximately 1.4 million shares of Healtheon/WebMD stock.
"Our PTEKVentures.com investment arm has enjoyed incredible success," said Boland T. Jones, Premiere Technologies' Founder, Chairman and CEO. "Since the dates of its investments, PTEKVentures has realized an annual return on investment (ROI) of 810% for WebMD (NASDAQ: HLTH) and 2080% for VerticalOne (NASDAQ: SONE). We have several more investments in our existing PTEKVentures portfolio that we believe will be valuable. In addition, we're evaluating several new Internet companies to invest in very soon."
PTEKVentures invests in the early stages of Internet companies that provide valuable business-to-business services. These strategic investments also provide additional distribution channels for Premiere's service offerings.
"The payment of our short-term debt aligns our capital structure with our recently announced strategy to spin out our own Internet assets," said Jones. "PTEKVentures has proven to be competitive with funds like CMGI and ICG, and we believe this is the right strategic direction for Premiere and will be successful for increasing shareholder value."
Since Jeff Allred assumed his duties in January as President and COO, Premiere Technologies has Web-enabled its existing services to better meet its customers' needs, restructured the company to streamline its business lines and reduce corporate overhead, and paid off its short-term debt.
"Because of the strategic initiatives we've executed during the past nine months, we anticipate our three operating units will generate significant positive cash flow with fundamental top-line growth in 2000," said Jeffrey A. Allred, Premiere Technologies' President and COO. "We plan to use this money to fund additional revenue growth, make future PTEKVentures investments, and take other actions to improve shareholder value."
About Premiere Technologies
Premiere Technologies, Inc. (NASDAQ: PTEK) is a holding company of leading Internet-based and telephony-based business-to-business service providers. Premiere operating companies include Premiere Conferencing, Premiere Document Distribution, and Premiere Messaging. The Company's PTEKVentures.com investment arm has ownership interests in Healtheon/WebMD(NASDAQ: HLTH), S1 Corporation (NASDAQ: SONE), USA.NET, Webforia, and Derivion. The Company leverages its PTEKVentures investments to provide additional distribution channels for its various service offerings.
Premiere Technologies' corporate headquarters is located at 3399 Peachtree Road NE, The Lenox Building, Atlanta, GA 30319. Additional information can be found at www.premtec.com.
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