Prairie will be sold for approximately $39 million (net of cash acquired), to be paid in cash upon closing of the transaction. Closing is anticipated to be mid-August, subject to the satisfaction of customary closing conditions. In addition, the merger agreement provided for contingent payments of up to $6 million through the end of 2009 upon the achievement of certain predetermined operating criteria.
CSG expects the acquisition to add about $7 million-$8 million of revenue for the remainder of 2007, assuming a mid-August closing.
CSG expects to incur certain acquisition-related charges and ongoing amortization of intangible assets related to this acquisition in 2007. Excluding the impacts of these acquisition-related charges, CSG does not expect the acquisition to have a material impact on its overall results of operations for full-year 2007.
Among Prairie’s services are inbound and outbound automated voice; text/SMS (short messaging service); e-mail and fax messaging to manage work-force communications; collections; lead generation; automated order capture; and service-outage notifications. Prairie also provides embedded recording options that allow clients to digitally capture, archive, transcribe and replay voice conversations.
Prairie has been a strategic partner of Englewood, Colo.-based CSG since 2005, when the companies introduced an application for automated appointment verification to improve the efficiency of field technicians.
“This acquisition is the culmination of a successful partnership between two industry leaders,” said Peter Kalan, executive vice president of corporate development and business development at CSG. “In addition to expanding the breadth and depth of methods our clients can use to interact with consumers, this acquisition extends our reach into industry verticals such as financial services, telecommunications, direct response and contact centers.”