Creates a Global BPO Services Company Approaching $1 Billion in Projected Revenue in 2010 and Approximately 30,000 Combined Employees
Boston, MA, October 1, 2009 - Stream Global Services, Inc.,
(NYSE/AMEX:OOO), a premium business process outsourcing (BPO)
provider specializing in customer relationship management services
for the Fortune 1000, today announced the closing of its previously
announced stock-for-stock exchange with EGS Corp., the parent
company of eTelecare Global Solutions, Inc.
The combined company, which will retain the Stream Global
Services name, will have North America, Europe, the Philippines,
Latin America, India and Africa. The combination creates a global
BPO company with a diversified Fortune 1000 customer base, an
experienced executive team, a comprehensive BPO services portfolio,
and complementary businesses with technical and product leadership
across a wide range of industries, including the technology,
retail, entertainment, media telecommunications and financial
service sectors. The combined company will draw upon the broad
range of service strengths of each business's integrated service
offerings, ranging from sales and revenue generation to customer
care and technical support, as well as warranty services. It is
estimated that the combined enterprise will have annualized
revenues approaching $1 billion in 2010.
Stream has completed a previously announced private placement of
$200 million aggregate principal amount of 11.25 percent senior
secured notes due 2014 (the "Notes"). The Notes were issued by the
company at an initial offering price of 95.454 percent of the
principal amount. We intend to use the net proceeds of the Notes
Offering to refinance existing indebtedness of Stream and
eTelecare. The Notes offering was led by Goldman Sachs & Co.,
and joint book runners were Wells Fargo Securities, Morgan Stanley
and RBC Capital Markets. Stream also completed a Revolving Credit
Facility secured by certain assets of the company and certain of
its foreign subsidiaries totaling $100 million availability,
subject to borrowing base and other restrictions (the "Credit
Facility"). The Credit Facility was led by Wells Fargo Foothill,
LLC; as the agent and a lender, and the other lenders include
Goldman Sachs Lending Partners LLC, Morgan Stanley Senior Funding
Inc., and Royal Bank of Canada.
Scott Murray will continue to be the Chairman and Chief
Executive Officer of the combined company. Other members of the
executive team will include: Robert Dechant as EVP Global Sales
& Marketing; Robert Lyons as EVP Chief Technology &
Information Officer; Sheila Flaherty as EVP Chief Legal Officer;
Jeff Bishop as EVP Operations of Americas; Harry Jackson as EVP
Operations of EMEA; Gilbert Santa Maria as SVP of Corporate
Business Development; Andrew Suchoff as SVP of Global Human
Resources; and Robert Aldrich as SVP of Global Finance.
"The completion of the combination of Stream and eTelecare today
brings together two very strong franchises to deliver a diversified
set of BPO and CRM services for our clients on a truly global
basis. Stream is now one of the top service providers in the world
offering customer lifecycle support services such as: sales,
customer care, warranty and technical support to many of the
leading companies in the world. The new capital we have raised,
together with the deep support we have from our financial sponsors
Ares Management LLC, Providence Equity Partners LLC and Ayala
Corporation, will allow us to make long-term investments in new
services and technology, as well as expand our geographic footprint
into additional areas including China, South America and Japan,"
said CEO Scott Murray. Murray went on to say, "We have assembled
one of the most experienced and proven management teams in the BPO
industry, and we believe that Stream will continue to be a terrific
place for young people to build and grow their careers with us over
the next decade as we expand our business model to suit the needs
of our clients."
Contact Information:
Nancy Finn
Global Marketing Communications
nancy.finn@stream.com
781-304-1846 About Stream Global Services
Stream Global Services is a premium business process outsource (BPO) service provider specializing
in customer relationship management including sales, customer care and technical support for Fortune
1000 companies. Stream is a trusted partner to some of the world's leading technology, computing,
telecommunications, retail, entertainment/media, and financial services companies. Our service programs
are delivered through a set of standardized best practices and sophisticated technologies by a highly
skilled workforce of approximately 30,000 employees based out of 50 solution centers in 22 countries
supporting more than 35 languages. Stream continues to expand its global presence and service offerings
to increase revenue, improve operational efficiencies and drive brand loyalty for its clients. To learn
more about the company and its complete service offering, please visit www.stream.com.
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