Esyg News.
eSynergies Signs Letter of Intent to Acquire Salesmation And Its Subsidiaries for $45 million
SANTA BARBARA, Calif., Jan 8, 2001 /PRNewswire via COMTEX/ -- eSynergies, Inc.
(OTC Bulletin Board: ESYG) announced today that it has signed a letter of intent
to acquire 100% of the outstanding shares of Salesmation and its group of
companies for a minimum of $45 million in stock. Upon completion of this
transaction, eSynergies will become a next generation e-business application
service provider (ASP) offering a Web-based plug-n-play platform to integrate
and automate old economy and new economy business applications without hardware,
software, downloads or training.
The Salesmation group of companies include Salesmation, M2(M-squared) Limited
and CommerceSwitch. The three companies have audited consolidated revenues of
just under $5,000,000 for the last fiscal year. With almost no debt and two of
three divisions being cash flow positive, the combined companies have a clear
path to profitability over the next 12 months. "The Salesmation group of
companies have built cutting edge automation technologies in the
Business-to-Business (B2B) infrastructure, Customer Relationship Management
(eCRM) and Globalization industries," said Thomas Ronk, Salesmation's Chairman.
With only $4,000,000 in investment capital Salesmation attained nearly
$5,000,000 in revenues in its first year as a consolidated company. "We have a
proven business model that is scalable for rapid growth and expanding profit
margins," he added.
After the acquisition is complete, eSynergies will boast over 800 clients
worldwide, including the Government of South Africa, Sabre, American Airlines,
U.S. Department of Commerce, DoubleClick, Quiksilver, Canon, Smith Kline
Beecham, Enterprise Rent-a-Car, Bulk Register.com, Eprise and United Airlines.
Partnerships include Blaze Software / Brokat, iLux, Saqqara, Acxiom, Crunchy,
InfoUSA, NetCreations and WebTrends.
This new application integration service provider platform allows eSynergies to
compete across multiple industries. Research from Jupiter Communications and IDC
states that the B2B transaction market will exceed $6 trillion, $4 trillion of
which will require globalization services due to transactions occurring outside
the United States. Outsourcing technology to Application Service Providers
(ASPs) will represent a growing share of the $99 billion Internet Services and
$177 billion Outsourcing markets. Online advertising revenues are expected to
reach $28 billion, CRM will approach $12.1 billion and e-mail marketing will
grow to $7.3 billion over the next four years.
"In order to take advantage of this overwhelming growth, businesses must begin
to incorporate Internet strategies throughout their procurement and sales
processes, translate and globalize their Web sites into multiple languages and
invest in multiple selling models to penetrate worldwide markets and protect
market share," said Marcy Engelbrecht, President of eSynergies.
The Salesmation ASP includes powerful eCRM capabilities combined with recent
breakthroughs in rules engine technology to enable businesses to connect brick
and mortar back office applications to major e-business applications using
pre-built adapters. Business managers can design and execute complex
advertising, marketing and sales campaigns based on online click stream, offline
demographic and all types of legacy database information. Business logic can be
entered into the system from the Salesmation Web site and users can automate
most any business process without the help of programmers or IT staff. By
integrating multiple disparate data sources and automating best business
practices, Salesmation provides the platform necessary to leverage existing IT
infrastructure to break the cost barrier of next generation Internet
applications.
M2 Limited has been providing translation and globalization services for over 20
years and will complement the eSynergies ASP platform by providing language
translation and globalization in 48 languages. M2 helps companies leverage
content from multiple sources by automating the exchange of data between
multiple applications, formats and character sets. After the acquisition is
complete, M2 will provide an open integration framework providing a
collaborative environment that increases productivity by allowing translators
worldwide the ability to view and edit dynamic content as it appears on the Web
page, a critical necessity in globalizing database-driven sites. This will
enhance M2's ability to localize its customers' Web sites through more efficient
project management of global resource allocation.
CommerceSwitch markets and sells a Web-based content management and B2B exchange
ASP service that converts product catalogs into XML and automates the submission
of those products into any of the major B2B exchanges and net markets. By
transforming, managing and exchanging product content, CommerceSwitch provides a
complete product management and exchange solution that drives increased sales
and buyer loyalty throughout the e-commerce channel. Its B2B supplier solution
aggregates and integrates digital product content, maintains accurate and
up-to-date product information and delivers content in any format (XML, cXML,
xCBL, CIF, RosettaNet, etc) by automating the submission of products into Ariba
and CommerceOne powered B2B exchanges and net markets.
By leveraging a company's existing infrastructure investment and valuable
technical assets, the eSynergies ASP platform can transform an organization into
an intelligent enterprise with powerful strategic competitive advantages.
