R.R. Donnelley to Acquire OfficeTiger Acquisition Expands Global Business Process Outsourcing Capabilities
Wednesday, 22 March 2006
R.R. Donnelley & Sons Company announced that it has signed a definitive agreement to acquire OfficeTiger, a leading provider of business process outsourcing (BPO) services, in an all-cash deal, for approximately $250 million. The agreement is subject to customary closing conditions, including regulatory approval, and is expected to close this spring.
OfficeTiger, headquartered in New York, provides integrated onsite- offshore BPO services to Fortune 500 companies and to professional services firms through its operations in North America, Europe, India and Sri Lanka. Its judgment-based outsourcing solutions address a variety of needs for vertical segments that include financial services, publishing, manufacturing, transportation, telecommunications, healthcare, advertising, and more.
OfficeTiger's services include sophisticated financial analysis and reporting, desktop publishing, creative services, word processing, credit analysis, claims processing, litigation support, market research, database services, managing creative services for output and more.
OfficeTiger has an established sales organization with a broad presence in the United States that is expected more quickly to enable RR Donnelley to expand its deep relationships with North American customers to include more BPO services.
This is RR Donnelley's second acquisition of a leading BPO provider in less than a year. In June 2005, RR Donnelley concluded its acquisition of Astron, a UK-based BPO supplier with resources in Europe, India, and Sri Lanka.
OfficeTiger's transaction processing services are closely related and complementary to RR Donnelley's existing document-based outsourcing resources. In concert with Astron, OfficeTiger will enable RR Donnelley to expand its already deep relationships with Fortune 500 companies in both the US and Europe.
"Having been a customer of OfficeTiger's for several years, we are pleased to announce this acquisition as the logical next step in building our global BPO business," said Mark A. Angelson, RR Donnelley's Chief Executive Officer. "OfficeTiger's broader financial management, research and analytics, marketing-related resources and other knowledge-based capabilities enhance RR Donnelley's offering in the fast-growing, higher return BPO segment. Although this acquisition will be mildly dilutive to earnings in 2006 only, we expect that together we will realize cost efficiencies and significant cross-selling opportunities and that our non-GAAP EPS still will be in the range of our previous guidance."
OfficeTiger was founded by Randolph Altschuler and Joseph Sigelman, both of whom will remain as co-Presidents of OfficeTiger and assume additional responsibilities within RR Donnelley.
"RR Donnelley is an ideal partner for OfficeTiger," said Sigelman. "RR Donnelley and OfficeTiger both work to foster cultures that emphasize deep commitments to performance and client satisfaction."
Altschuler added, "We believe that RR Donnelley's strong relationships with customers in key vertical segments will strengthen our sales program, creating opportunities for growth and development of our employees in the United States and abroad."