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Connors Closer to Major Buy
Information Services Group (ISG), the acquisition vehicle established by former VNU boss Michael Connors, has moved a step closer to acquiring sourcing advisory firm TPI, which has meanwhile announced solid first half results. ISG also revealed post-merger cost reduction plans.
ISG filed a revised preliminary proxy statement with the Securities and Exchange Commission, setting the close of business on September 28 - next Friday - as the record date for the determination of stockholders entitled to notice of and to vote on the acquisition proposals.
'We are extremely pleased to be closer to the completion of our acquisition of TPI' says Connors, Chairman and CEO of ISG. 'We are on track to reach our objective to build a high-growth, industry-leading information services company.'
TPI (Technology Partners International) has reported revenues of $85.6 million for the first half of 2007, up $2.2 million or 3% from the prior year. 2006 figures were boosted by an extraordinarily large ($10.7 million) one-off IT renegotiation for its largest client.
Net income for the first half of 2007 was up 14% to $2.9m. Earnings before interest, taxes and depreciation and amortization (EBITDA) totaled $7.7 million, an increase of $0.1m from last year which included c.$2.3m for the one-off contract.
Edward L. Glotzbach, President and CEO of TPI, says demand for his firm's services 'continues to be strong and is accelerating'. During the first six months of 2007, the firm made investments to launch operations in Sweden, Japan and the public sector industry vertical in North America. 'I expect these investments to contribute significantly to our results in the coming twelve months and beyond', said Glotzbach.
ISG also announced today its 'Value Creation Plan' (VCP) to reduce costs and improve productivity at TPI, following the acquisition. ISG says the plan is expected to generate estimated annualized savings of $8-12m and will be implemented over a 12 to 15 month period. The VCP has been developed jointly with TPI.
Based in Stamford, CT, Information Services Group is online at www.informationsg.com. TPI can be found at www.tpi.net.
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