BPO Management Services Announces Signed Letters of Intent to Acquire Three Companies in the Middle Market Space
IRVINE, Calif., Jan. 11 /PRNewswire-FirstCall/ -- BPO Management Services, Inc., (OTC: BPOM), a full service business process outsourcing company focused on serving middle market enterprises, today announced that it has recently signed three separate letters of intent to acquire three complementary, privately-held companies, pending the satisfactory completion of financing and definitive agreements with each of the parties. BPO Management Services, Inc. ('BPOMS') intends to acquire DocuCom Imaging Solutions, Inc ('DocuCom'), a document management solutions provider based in Toronto Canada, Human Resource MicroSystems, Inc. ('HRMS'), a provider of HR information systems ('HRIS') software to middle market enterprises based in San Francisco, CA, and an international eLearning software company. The closing dates of the proposed acquisitions are anticipated to occur within 90 days.
In conjunction with this announcement, BPOMS has retained C. E. Unterberg, Towbin as its investment banker to secure the necessary financing to fund these proposed acquisitions and support ongoing business growth activities.
BPO Management Services Chief Executive Officer Patrick Dolan stated, 'I am pleased to announce this initial group of acquisitions, each of which expands both our business offering and our footprint in mid-sized enterprises throughout North America and together should significantly add to our current annual revenue base of approximately $9 million. Now that we have completed our merger and established BPOMS as a public company, we are well underway with our strategy to grow the company into the market leader position as the premier BPO service provider to the underserved middle market.'
BPOMS now offers outsourcing services to support most major back-office business functions and supports clients throughout North America. Upon successful completion of the integration effort associated with these proposed acquisitions, it is anticipated that BPOMS will have a projected annualized revenue run rate of $25 million, with approximately $3 million in EBITDA.
DocuCom: www.DocuCom.ca
DocuCom is recognized as a leading provider of document management solutions across Canada and offers a wide range of document management products and service solutions to government and middle market enterprises. Approximately 50% of its existing business is provided under recurring revenue customer service contracts through which DocuCom supports its clients' document management and imaging based requirements. In addition to expanding BPOMS' document management service offering, this acquisition will greatly enhance BPOMS' market presence with both corporate and government organizations located in the strategic Toronto-Ottawa-Montreal business corridor and provide ready access to the large US marketplace located in the nearby northeastern United States. BPOMS plans to merge DocuCom with its existing ECM/Document Management division based in Winnipeg, Canada. For the most recent fiscal year ended as of October 31, 2006, DocuCom reported annual revenues of approximately $12 million dollars.
Human Resource MicroSystems (HRMS): www.HRMS.com
HRMS provides comprehensive HRIS Software Solutions to Human Resource departments across a broad range of middle market industries. Its current install base includes more than 100 middle market companies located throughout the United States. The company combines the human resource and technical expertise to deliver HRIS products and services that meet the immediate and ongoing HR software needs of middle market enterprises. In addition to licensing this product, BPOMS plans to provide this HRIS software to its customers on a software-as-a-service ('SaaS') basis hosted from a BPOMS data center facility where it is intended to serve as the anchor offering for its HRO division headquartered in San Francisco, CA. To date approximately 50% of HRMS revenues are derived from recurring revenue maintenance and support contracts.
eLearning Organization
The third proposed acquisition is an eLearning solutions company that licenses a proprietary eLearning courseware library and technology infrastructure and tool-set designed to coordinate enterprise-wide training activities and allow the development of custom in-house courseware to support popular business and IT applications for middle market enterprises. Currently more than 50% of its existing business is derived from providing its technology on a subscription based or recurring revenue model. It is anticipated that under the BPOMS umbrella, this model will be expanded as this eLearning technology would be hosted at a BPOMS data center facility and be offered on a SaaS basis. This technology will complement the BPOMS HRO service offering, adding significant capability to support client training and employee development activities. This organization reported revenues of approximately $3 million in its most recent fiscal year end.
About BPO Management Services, Inc.
BPO Management Services (BPOMS) is a business process outsourcing (BPO) service provider that offers a diversified range of on-demand services, including human resources, information technology, enterprise content management, and finance and accounting, to support the back-office functions of middle-market enterprises on an outsourced basis. BPOMS supports middle-market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce. For more information, please visit www.bpoms.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
With the exception of historical or factual information, the matters discussed in this press release, including without limitation the completion of any and/or all of the proposed acquisitions, obtaining additional financing for these acquisitions, and the ability of the Company's common stock to trade or be quoted on various markets are forward-looking statements that involve risks and uncertainties. Actual results may differ. Factors that could cause or contribute to such differences in results include, but are not limited to, fulfillment of conditions to close any or all of the proposed acquisitions, including without limitation, the availability of financing; changes in market and business conditions and the conditions of the parties to the proposed transactions; and other risks and factors detailed from time to time in the Company's public statements and its periodic reports and other filings with the U.S. Securities and Exchange Commission.
SOURCE BPO Management Services, Inc.
Source: PR Newswire (January 11, 2007 - 6:30 AM EST)
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