TSIG.com Concludes Definitive Agreement to Acquire The Affinity Group
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--June 14, 2000--TeleServices Internet Group Inc. (OTCBB:TSIG - news), known as TSIG.com, today announced that it has entered into a definitive agreement to acquire The Affinity Group, an affinity marketing company that specializes in database mining and sales. For 1999, The Affinity Group had revenues of $22 million (unaudited), with pre-tax profits of $4 million (unaudited), and for 2000, Affinity has targeted revenues of $30 million with profits of $6 million.
The acquisition of Affinity is designed to leverage TSIG.com's relationships with multi-national corporations such as Coca-Cola and Lufthansa and national non-profits such as UCP by introducing them to Affinity and its proven affinity marketing programs. The acquisition also complements TSIG.com's recently announced acquisition of
GeneralSearch.Com, a portal and search engine company, because Affinity's programs have the potential to drive millions of Internet users to register on GeneralSearch.Com.
The transaction will close after (1) TSIG.com's 10-for-1 reverse split, which was previously approved by the company's shareholders, (2) the closing of the GeneralSearch.Com transaction, and (3) an audit of the books and records of Affinity. In exchange for 100% of the equity of Affinity, TSIG.com will issue 5 million post-split shares of its common stock. Other terms were not disclosed. TSIG.com has also agreed to execute three-year employment agreements with Scott Roix, the president and founder of Affinity, and the seven members of his management team, and to grant options to them and other key employees. Currently, Affinity has a total of seventy-two employees.
``With the acquisition of The Affinity Group, TSIG.com gains expertise in database mining and marketing, and a great management team. This acquisition of marketing know-how and talent is a perfect complement to GeneralSearch.Com, with their latest generation search engine and IT capabilities,'' commented Robert Gordon, chairman of TSIG.com. ``We will now be able to provide our corporate and non-profit partners with well-executed affinity marketing programs plus state-of-the-art Internet technology, while at the same time driving traffic to our own Internet portal and search engine.''
Added Scott Roix, president of Affinity, ``We have worked hard to build profitable affinity marketing programs and a great management team. We have been looking for larger corporate and non-profit partners for our affinity programs, and a way to leverage our efforts using the Internet. The bells went off when we learned about TSIG.com's partnerships with major corporations and non-profits and their purchase of GeneralSearch.com. We believe there are tremendous synergies between TSIG.com's relationships, GeneralSearch.Com's technology, and Affinity's marketing and management skills - and we're excited about whatlies ahead.''
About The Affinity Group LLC
The Affinity Group LLC, headquartered in St. Petersburg, Florida, is an emerging affinity marketing company that specializes in database mining, product development and sales. Affinity forms partnerships with other successful companies in order to create synergies that offer the best products to the most customers at attractive margins for Affinity and its partners. The success of Affinity started with certificate travel and club memberships, and has expanded into affinity programs that serve a growing U.S. and international customer base. Affinity currently markets its products and services in the United States, Europe, Australia, Latin America and Canada.
About GeneralSearch.Com., Inc.
GeneralSearch.Com, Inc., is a private company that was formed in 1998 to enhance the individual's Internet experience. GeneralSearch.Com is an Internet portal with one of the most powerful and accurate search engines on the Internet, with access to a database of more than 100 million links. The search engine is family-oriented, with filters that eliminate virtually all adult-oriented content, while still providing the most accurate search results available on the Internet.
GeneralSearch also has more than 900 Internet-based affiliates, including Office Max, Stamps.com and other popular sites. GeneralSearch offers free Internet access for life, free e-mail, fax, integrated messaging and other services. GeneralSearch.Com is located in West Chicago, IL. The company can be reached by e-mail at info@generalsearch.com. The company's website is at www.generalsearch.com.
About TSIG.com
Headquartered in St. Petersburg, Florida, TeleServices Internet Group Inc., known as TSIG.com, has created its myCard programs to benefit both the corporate and non-profit communities, as well as consumers. TSIG.com forms myCard partnership agreements with national corporations and non-profit organizations, and then works with those partners to design revenue-generating programs that attract consumers to their Web sites. The first myCard program was myMusicCard, which enables consumers to purchase CDs and cassettes at the lowest available prices. Similarly TSIG.com's myPhotoCard programs provide low-cost film processing and Kodak Film, and the myPhoneCard TSIG.com Concludes Definitive Agreement to Acquire The Affinity Group/page 3 programs provide low-cost prepaid long-distance calling card services. For all new myCard users, TSIG.com has recently arranged through General Search.Com to provide free Internet access for life, free e-mail, fax, integrated messaging and other features.
These customized marketing programs are intended to provide recurring revenues to TSIG.com and its partners, and help develop strong brand loyalty and awareness within target communities. TSIG.com further enhances its myCard programs by providing customer service and support with its Web-based call center and related services. With non-profits, TSIG.com is engaged in ``cause-related marketing'' and has a ``volunteer sales force'' of millions generating sales and driving traffic to Internet sites for the lowest customer acquisition cost in the business. TSIG.com is the national marketing partner of UCP, the nation's largest non-profit health care organization and leader in the disability field, which each year serves over 1 million people with disabilities in the United States. TSIG.com's corporate web site is at www.tsig.com and the myMusicCard web site is at www.mymusiccard.com.
This press release contains ``forward-looking statements'' within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. Actual results could differ materially, as the result of (1) competition in the markets for the company's products and services, (2) the ability of the company to execute its plans, (3) the availability of financing at favorable terms, and (4) other factors noted in the company's public filings with the SEC.
Contact:
TSIG.com, St. Petersburg
Press Contacts:
Paul Henry, 727/897-4000
phenry@tsig.com |
