Kaulkin Ginsberg Company today announced that West Corporation (NASDAQ:WSTC), a leading provider of integrated customer contact solutions completed the acquisition of Attention LLC, a leading accounts receivable management company. Kaulkin Ginsberg served as advisor to West and initiated this transaction.
West Corporation acquired 100% ownership of Attention, LLC, a privately held accounts receivable management company with expected 2002 revenues of between $25 and $30 million. Under the terms of the agreement, West Corporation paid approximately $40 million in cash, which includes the assumption of approximately $5 million in debt, plus future payments for its current owners of between $21.5 and $50 million, depending on performance. Attention’s CEO, Jim Richards, and its management team will remain to run this division of West Corporation and will report to Chief Operating Officer, Nancee Berger.
“This strategic move into the accounts receivable management arena is a natural development for West,” explained Tom Barker, President & CEO. “The acquisition of Attention, LLC will allow us to capitalize on the tremendous opportunities in this large and growing market. Accounts receivable management services utilize similar infrastructure to our outbound business. Access to West’s infrastructure, capital and clients will drive aggressive growth with minimal capital expenditure. The end result will be improved utilization of assets, higher revenue per workstation and significant cross-selling opportunities for both organizations.”
West’s Robert Johnson, Executive Vice President Strategic Business Development, who spearheaded the acquisition of Attention, added, “Our management team recognized that while substantial synergies exist, there are vast financial and operational differences between the ARM and CRM industries. We went through a detailed and lengthy process to determine which company to acquire. Selecting the right management team with a thorough understanding of the intricacies of accounts receivable management who could work well within the West culture was essential. Through Kaulkin, we talked to a lot of leading players in the market, and we were able to accomplish our acquisition initiatives.”
When asked what this transaction means to his agency, Jim Richards said, “At Attention, we believe if you focus on your clients and your people, great things will happen to your business. By joining West Corporation, we now have access to the infrastructure and capital necessary to fulfill our potential and achieve our long-term growth goals. Bringing together the talent and experience of the Attention team with the resources of West creates a powerful combination in the ARM sector. We expect to grow aggressively and become an even stronger option to major credit grantors. Our high level of service and proven track record with West’s backing will help ensure our success.”
Mike Ginsberg, President and CEO of Kaulkin Ginsberg Company, added, “There are great synergies and substantial cross-sell opportunities between these companies and their industries. West and Attention have virtually no client overlap, which translates to significant growth opportunities for both companies. West and Attention provide best-in-class management practices and will benefit from each other’s expertise and market presence.
About West Corporation
Founded in January, 1986, West Corporation is a leading provider of integrated customer contact solutions focused on helping Fortune 1000 companies acquire, manage, retain and grow their customer relationships. Headquartered in Omaha, Nebraska, West has a team of approximately 24,000 employees, occupying thirty-five state-of-the-art contact centers and eight interactive automated voice and data processing centers across North America and India. For more information, please visit www.west.com.
About Attention, LLC
Based in Atlanta, Georgia, with offices in Texas and California, Attention, LLC is a premier accounts receivable management firm that began operations in October 1999 that operates in the health care, financial and automotive sectors. Led by industry veteran Jim Richards, the company has combined aggressive organic growth with strategic acquisitions to become one of the fastest growing and most profitable companies in the ARM industry.
About Kaulkin Ginsberg Company
Kaulkin Ginsberg Company is a leading advisor to the Outsourced Business Services sector, advising on more than 80 ARM transactions since 1992 with deal values approaching $2 billion. Kaulkin Ginsberg manages acquisitions and divestitures, locates strategic or financial partners, provides debt and equity funding sources, conducts market research, and provides consulting services. For more on Kaulkin, visit www.Kaulkin.com. Kaulkin’s sister company, CollectionIndustry.com, is the leading on-line content provider to the credit and collection industry. To access, click on www.CollectionIndustry.com .
