June 8, 1998
Lucent Technologies to Purchase SDX Business Systems, A U.K. Leader in Call Centre and Business Systems Markets
LONDON -- Targeting the fast-growing European market for call centres, Lucent
Technologies today announced its intention to acquire SDX Business Systems plc,
one of the United Kingdom's leading providers of business communications
systems, for approximately $200 million (124 million British pounds sterling
(pounds)).ÿ The cash tender offer for all common shares has been recommended by
the board of SDX.ÿ The transaction is expected to be completed by the end of
July.
ÿ SDX, based in Welwyn Garden City, Hertfordshire, provides integrated voice and
data switching solutions for small and mid-sized businesses as well as branch
offices of large businesses.ÿ SDX's core product, called INDeX(R), converges
voice and data applications on a single platform and is at the heart of its call
centre solution.ÿ SDX also markets an award-winning line of router-based PBXs
that make it easy for small businesses to put voice and Internet traffic on one
system.
ÿ "Acquiring this dynamic company will help accelerate Lucent's growth outside
the United States, expand our already strong presence in the fast-growing
European call centre market, and open important new sales channels and
opportunities for Lucent, especially among small and mid-sized customers," said
Bill O'Shea, president of Lucent's Business Communications Systems group.
O'Shea noted that the acquisition will expand the breadth of Lucent's product
line in Europe.
ÿ According to industry analysts, the total Western Europe PBX market, including
hardware, applications and services, was valued at more than $9 billion in 1997.
Total call centre sales in that region are projected to grow more than 20
percent annually to more than $3 billion in 2001.
ÿ "Lucent is already the leader in large call centres in Western Europe," said
Ron Griffiths, managing director of Lucent Technologies for the United Kingdom.
"SDX's expertise in computer-telephony integration (CTI) technology has helped
it become a leading supplier of small and medium-sized call centre solutions.
With SDX, we can more effectively serve customers in all call centre segments,
and in other segments of the business communications market."
ÿ One way the industry measures call centre size is by number of agents. Small
to medium-sized call centres have less than 75 agents; large call centres can
have as many as 400 agents or more.
ÿ In fiscal 1997, SDX reported sales of approximately $75 million (45.3 million
pounds) and net income of about $5 million (2.9 million pounds). SDX has about
340 employees, all of whom will become part of Lucent and remain in the United
Kingdom.
ÿ "We're very pleased at the prospect of becoming part of Lucent," said Frank
Bretherton, managing director of SDX.ÿ "Together, our companies will provide
business customers of all sizes with a complete line of innovative
communications solutions."
ÿ Approximately 70 per cent of business communications systems sales in Europe
are made through indirect channels, such as distributors, resellers and
telecommunications service providers.ÿ SDX markets its products through a
network of resellers and distributors in 14 countries in Europe, the Middle
East, Africa and Asia/Pacific.ÿ SDX plans to enter five more countries this
year.
ÿ Lucent said this acquisition will add attractive products and technology to
its portfolio and expand its extensive indirect distribution channels in Europe.
SDX's core product, the INDeX (Integrated Network Digital eXchange), is a
technologically advanced, modular flexible communications gateway.ÿ It provides
basic telephony solutions such as key systems, PBXs and wireless telephony,
together with high-end applications such as call centres, voice processing,
messaging, CTI and data switching for single sites as well as a networked
multi-site environment.
ÿ The company has an installed base of about 35,000 systems.ÿ Its customer base
is spread across a range of industries, from small companies to large
multinationals.
ÿ Through its recent acquisition of start-up Network Alchemy, SDX also markets a
line of leading-edge router-based PBXs for home and small businesses.ÿ This
growing line of products combines a voice switch with a data router, giving
users both PBX capabilities and Internet access on a single, easy-to-install
system.ÿ Two of the products, CyberGear(TM) and ArgentOffice(TM), were named
"Hot Products of 1998" by Data Communications magazine.
ÿ The purchase is expected to result in a one-time, non-cash charge against
earnings in the fiscal fourth quarter of 1998 for in-process research and
development.ÿ The purchase is expected to be essentially neutral to earnings in
the first full year of operation.
ÿ Lucent markets a range of voice-based business products in Europe, including
its family of DEFINITY(R) communications servers for medium and large
businesses; the recently introduced EUROGENERIS(R) system, an ISDN key system
developed and made in France for small businesses; and its award-winning suite
of CentreVu(R) Call Centre Solutions for large call centres.
ÿ Lucent Technologies has 131,000 employees in 90 countries around the world.
In Europe, the Middle East and Africa, Lucent employs 15,000 people in 98
locations across 26 countries.ÿ In the United Kingdom and Ireland, there are
approximately 2,200 Lucent employees spread across 11 locations.ÿ Ten of
Lucent's 11 business units are represented in the United Kingdom.ÿ These include
Lucent's Bell Labs research and development centres and Lucent's Business
Communications Systems (BCS) group, which develops, manufactures, markets and
services advanced voice, messaging, data and multimedia business communications
solutions.
ÿ Lucent Technologies designs, builds and delivers a wide range of public and
private networks, communications systems and software, business telephone
systems and microelectronics components.ÿ Bell Labs is the research and
development arm for the company.ÿ More information about Lucent Technologies,
headquartered in Murray Hill, N.J., USA, is available on its Web site at
lucent.com.
Phil
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