Technology Solutions Company (TSC), a consulting company delivering business benefits through the application of information technology, and ZAMBA Solutions, a customer relationship management (CRM) services company, today announced that they have reached a deal for TSC to acquire ZAMBA.
Under the terms of the agreement, which was approved by both companies’ boards of directors, ZAMBA stockholders will receive 0.15 share of TSC common stock for each share of ZAMBA common stock they hold as of the effective date of the merger.
Upon completion of the transaction, ZAMBA stockholders will own approximately 12.5 percent of the company. Including anticipated cost synergies/reductions, the transaction is expected to increase TSC’s 2005 pretax income, excluding amortization of acquired intangibles and other purchase accounting adjustments.
Value, Growth
“TSC is excited about adding ZAMBA’s exceptional delivery and customer service capabilities, which were recently recognized by Gartner as having the highest overall satisfaction rating of all CRM service providers evaluated,” TSC President and Chief Executive Officer Michael Gorsage said.
“We see great value and growth in the CRM marketplace over the next several years, and this acquisition should enable us to take advantage of this trend and represents a continuation of our overall expansion strategy, in which our top priority is providing great service to our clients,” he said.
Michael Carrel, ZAMBA’s president and chief executive officer, said, “ZAMBA is also excited about this merger as it represents a significant step forward in our strategic growth plan and enables us to serve our clients with a much broader scope of services and offerings.”
Strong Balance Sheet
Carrel added, “With TSC’s strong balance sheet, and recently strengthened leadership team, we see tremendous opportunity to build a great company together.”
The transaction is subject to certain closing conditions, including approval by ZAMBA’s stockholders. The transaction is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.
Delivering business benefits through the application of information technology, Technology Solutions Company is a consulting company that focuses on rapid results.
It helps clients select, install, upgrade and optimize the software systems that run their business operations.
TSC focuses on manufacturing and distribution, supply chain, financial, human resources and customer service systems. Its range of services include project planning, software selection, reengineering, implementation, upgrades, training and outsourcing, with specialized expertise in product configuration solutions, forensic technology consulting and project turn-arounds.
ZAMBA Solutions is a CRM services company. It helps clients to be more successful in acquiring, servicing and retaining customers. ZAMBA is focused on customer-centric services by leveraging best practices and best-in-class technology to enable insightful, consistent interactions across all customer touchpoints.
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