NEW YORK, Dec. 22, 2021 /PRNewswire/ -- ALJ Regional
Holdings, Inc. (NASDAQ: ALJJ) ("ALJ") announced today that
it has entered into a definitive agreement to sell the tolling and
transportation and health benefit exchange verticals of its wholly
owned subsidiary, Faneuil, Inc. ("Faneuil"), to TTEC
Holdings, Inc. (NASDAQ: TTEC) ("TTEC"), one of the largest
global customer experience ("CX") technology and services
innovators for end-to-end digital CX solutions. Consideration to be
paid by TTEC is $140 million, less an
indemnification escrow amount of approximately $15 million dollars. Faneuil is also eligible to
receive additional earn-out payments in an aggregate amount of up
to $25 million.
Other Faneuil verticals, including its utilities, non-health
benefit exchange, commercial and other verticals, as well as
Vistio, a wholly owned subsidiary of Faneuil, which incorporates
software tools and methodologies to improve and optimize the
contact center agent experience, will remain at Faneuil and Faneuil
will continue to operate as a wholly owned subsidiary of ALJ.
The transaction is expected to close during the first calendar
quarter of 2022, subject to customary closing conditions and
regulatory approvals, including clearance under the
Hart-Scott-Rodino Act by the Federal Trade Commission.
"This exciting partnership offers us the ability to provide our
core clients many opportunities to leverage broader industry
capabilities including scalability and security of our IT
technology, workforce management, and the ability to leverage near
and off–shore recruiting resources," said Anna Van Buren, President and CEO of Faneuil.
"This acquisition stands as a testament to the strength of the
Faneuil business and brings together two management teams with
extensive CX expertise to better serve our customers. We look
forward to working with the TTEC team to complete the transaction
and ensure that we continue to deliver the highest quality service
to our customers. Both Faneuil and TTEC anticipate a seamless
transition for customers and employees, and a quick enhancement to
our existing customers in the new year."
"We are very pleased with this partnership with TTEC as it
creates synergies for both Faneuil's transitioning and existing
customer base and will facilitate additional growth opportunities
for Faneuil," added Jess Ravich,
Chief Executive Officer of ALJ.
About Faneuil
For more than 25 years, Faneuil (www.faneuil.com) has
specialized in designing, implementing managing and operating
multichannel customer care, back–office business processing, and
Solution as a Service (SaaS) offerings for government and
commercial clients operating in complex, highly regulated
environments nationwide. Headquartered in Hampton, Virginia, Faneuil delivers broad
support to several diverse industries, including health and human
services, transportation and tolling, utilities, state and
municipal governments, and commercial/retail services. With an
unrelenting focus on creating consistently positive customer
experiences, Faneuil's customer care professionals are intent on
building the brands and reputations of its client partners every
day.
About ALJ
ALJ Regional Holdings, Inc. is the parent company of (i)
Faneuil, Inc., a leading provider of call center services, back
office operations, staffing services, and toll collection services
to commercial and governmental clients across the United States, and (ii) Phoenix Color
Corp., a leading manufacturer of book components, educational
materials, and related products producing value-added components,
heavily illustrated books, and specialty commercial products using
a broad spectrum of materials and decorative technologies.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the U.S. federal securities laws about Faneuil,
TTEC, ALJ and the proposed acquisition, including but not limited
to all statements about the timing and approvals of the proposed
acquisition; ability to consummate the acquisition; the amount of
earn-out payments to be paid to Faneuil, if any; future operations;
future business performance of Faneuil, TTEC and ALJ; and all
outcomes of the proposed acquisition, including synergies, cost
savings, and ability to leverage broader industry capabilities,
which are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Words such as
"expect," "likely," "outlook," "forecast," "preliminary," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"goal," "guidance," "target," "continue," "sustain, "synergy," "on
track," "believe," "seek," "estimate," "anticipate," "may,"
"possible," "assume," and variations of such words and similar
expressions are intended to identify such forward-looking
statements. You should not place undue reliance on these
statements, as they involve certain risks and uncertainties, and
actual results or performance may differ materially from those
discussed in any such statement. Factors that could cause actual
results to differ materially include but are not limited to general
economic and capital markets conditions; inability to obtain
required regulatory or other approvals or to obtain such approvals
on satisfactory conditions; inability to satisfy other closing
conditions; the occurrence of any event, change or other
circumstance that could give rise to the termination of the
definitive agreement; the effects that any termination of the
definitive agreement may have on Faneuil or its business; legal
proceedings that may be instituted related to the proposed
acquisition; unexpected costs, charges or expenses; failure to
successfully integrate the acquisition, realize anticipated
synergies or obtain the results anticipated; and other risks and
uncertainties discussed in ALJ's annual report on Form 10-K and
quarterly reports on Form 10-Q filed with the Securities and
Exchange Commission and available through EDGAR on the SEC's
website at www.sec.gov. All forward-looking statements in this
release are made as of the date hereof and we assume no obligation
to update any forward-looking statement.
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SOURCE ALJ Regional Holdings, Inc