Sykes Enterprises, Incorporated (“SYKES” or the “Company”) (NASDAQ:
SYKE), a leading full life cycle provider of global customer
engagement services, multichannel demand generation and digital
transformation, today announced through its digital marketing
subsidiary Clearlink the acquisition of Taylor Media Corporation,
owner of The Penny Hoarder (“TPH”), a leading independent personal
finance digital media company whose mission is delivering financial
empowerment. Founded in 2010 by Kyle Taylor, St. Petersburg,
Florida based TPH empowers millions of people to make smart choices
with their money, by sharing actionable and inspirational advice
and resources on how to make, save and manage money. Its extensive
content library and expertise within personal finance has allowed
TPH to partner with a vast network of clients across the credit,
investing, banking and insurance categories. Its dedication to
delivering the right content at the right time for its readers has
created a loyal, high-intent audience that positions TPH as a
premier customer acquisition partner for its clients. This
acquisition extends Clearlink’s existing leadership in
home-services and insurance into the broader financial services
industry, while also adding additional expertise in paid media
marketing. Furthermore, through this acquisition, Clearlink will be
gaining access to a portfolio of client logos, primarily market
disruptors, within credit, investing, banking and insurance.
“Through our Clearlink Digital Media group, we
are focused on building a portfolio of digital media assets that
help consumers find, buy and use products and services that improve
their everyday lives. TPH advances this initiative by expanding our
portfolio into the very large market of personal finance. The
insights, knowledge and expertise that we gain through the TPH
transaction will not only enable us to help consumers make informed
decisions about financial products and services, it will also help
us strengthen the brand and growth of financial services clients
all over the world,” commented Sykes Enterprises, Incorporated’s
President and Chief Executive Officer Chuck Sykes.
TPH generated approximately $50 million of
revenue on a trailing twelve-month basis ended September 30, 2020.
Under the terms of the transaction, the Company will purchase the
stock of TPH for an all-cash purchase consideration of $102.5
million. The consideration is expected to be funded through a
combination of the Company’s credit facility and cash on hand.
“This acquisition marks a significant milestone
and validation of hard work from The Penny Hoarder team. We’re
excited to have found a partner in SYKES who believes in our
mission of helping consumers make better financial decisions. The
financial services industry is changing rapidly and consumers need
an ally in navigating this new economy more than ever. Our
partnership will give us a leg up in meeting these challenges while
providing more opportunities for our employees and advertisers. We
couldn’t be more thrilled to join the team,” remarked Kyle Taylor,
founder and Chief Executive Officer of The Penny Hoarder.
The Company anticipates the transaction, which
is expected to close before year-end 2020, to be accretive to 2021
diluted earnings per share and plans to quantify the accretion
levels when it releases its fourth quarter 2020 financial results
in February 2021.
“We are thrilled to welcome The Penny Hoarder
team into the SYKES family. With such strong alignment in both our
culture and mission, I’m excited to see what we will achieve
together,” stated Ted Roxbury, President of Clearlink.
JEGI | CLARITY (www.jegiclarity.com), the
leading independent investment bank for the global media,
information, marketing and technology sectors, represented The
Penny Hoarder in this transaction. Shumaker, Loop & Kendrick,
LLP served as SYKES' legal advisor.
About Sykes Enterprises,
IncorporatedSykes Enterprises, Incorporated (“SYKES” or
“the Company”) is a leading provider of multi-channel demand
generation and global customer engagement services. The Company
provides differentiated full lifecycle customer engagement
solutions and services primarily to Global 2000 companies and their
end customers principally in the financial services,
communications, technology, transportation & leisure and
healthcare industries. SYKES’ differentiated full lifecycle
management services platform effectively engages customers at every
touchpoint within the customer journey, including digital marketing
and acquisition, sales expertise, customer service, technical
support and retention, many of which can be optimized by a suite of
robotic process automation (“RPA”) and artificial intelligence
(“AI”) solutions. The Company serves its clients through two
geographic operating regions: the Americas (United States, Canada,
Latin America, South Asia and Asia Pacific) and EMEA (Europe, the
Middle East and Africa). Its Americas and EMEA regions primarily
provide customer-engagement solutions and services with an emphasis
on inbound multichannel demand generation, customer service
and technical support to its clients’ customers. These services are
delivered through multiple communication channels including phone,
email, social media, text messaging, chat and digital self-service.
The Company also provides various enterprise support services in
the United States that include services for its clients’ internal
support operations, from technical staffing services to outsourced
corporate help desk services. In Europe, the Company provides
fulfillment services, which includes order processing, payment
processing, inventory control, product delivery and product returns
handling. Additionally, through the acquisition of RPA provider
Symphony Ventures Ltd (“Symphony”) coupled with its investment in
AI through XSell Technologies, Inc. (“XSell”), the Company also
provides a suite of solutions such as consulting, implementation,
hosting and managed services that optimizes its differentiated full
lifecycle management services platform. SYKES’ complete service
offering helps its clients acquire, retain and increase the
lifetime value of their customer relationships. The Company has
developed an extensive global reach with customer engagement
centers across six continents, including North America, South
America, Europe, Asia, Australia and Africa. It delivers
cost-effective solutions that generate demand, enhance the customer
service experience, promote stronger brand loyalty, and bring about
high levels of performance and profitability. For additional
information please visit www.sykes.com.
About Taylor Media Corporation, Owner of
The Penny HoarderThe Penny Hoarder is one of the nation’s
largest personal finance websites, reaching millions of readers
each month. Its purpose is to share actionable articles and
resources to teach people how to earn, save and manage their money.
To learn more about The Penny Hoarder, visit
https://www.thepennyhoarder.com/.
Forward-Looking Statements
This press release may contain “forward-looking
statements,” including SYKES’ estimates of its future business
outlook, prospects or financial results. Statements regarding
SYKES’ objectives, expectations, intentions, beliefs or strategies,
or statements containing words such as “believe,” “estimate,”
“project,” “expect,” “intend,” “may,” “anticipate,” “plans,”
“seeks,” “implies,” or similar expressions are intended to identify
such forward-looking statements. It is important to note that
SYKES’ actual results could differ materially from those in such
forward-looking statements, and undue reliance should not be placed
on such statements. Statements about the effects of the COVID-19
pandemic on our business, operations, financial performance and
prospects may constitute forward-looking statements and are subject
to the risk that the actual impacts may differ, possibly
materially, from what is reflected in those forward-looking
statements due to factors and future developments that are
uncertain, unpredictable and in many cases beyond our control,
including the scope and duration of the pandemic, actions taken by
governmental authorities in response to the pandemic, and the
direct and indirect impact of the pandemic on our clients, third
parties and us. Among the important factors that could cause such
actual results to differ materially are (i) the impact of economic
recessions in the U.S. and other parts of the world, (ii)
fluctuations in global business conditions and the global economy,
(iii) SYKES’ ability of maintaining margins, (iv) SYKES’ ability to
continue the growth of its support service revenues through
additional technical and customer engagement centers, (v) currency
fluctuations, (vi) the timing of significant orders for SYKES’
products and services, (vii) loss or addition of significant
clients, (viii) the early termination of contracts by clients, (ix)
SYKES’ ability to recognize deferred revenue through delivery of
products or satisfactory performance of services, (x) construction
delays of new or expansion of existing customer engagement centers,
(xi) difficulties or delays in implementing SYKES’ bundled service
offerings, (xii) failure to achieve sales, marketing and other
objectives, (xiii) variations in the terms and the elements of
services offered under SYKES’ standardized contract including those
for future bundled service offerings, (xiv) changes in applicable
accounting principles or interpretations of such principles, (xv)
delays in SYKES’ ability to develop new products and services and
market acceptance of new products and services, (xvi) rapid
technological change, (xvii) political and country-specific risks
inherent in conducting business abroad, (xviii) SYKES’ ability to
attract and retain key management personnel, (xix) SYKES’ ability
to further penetrate into vertically integrated markets, (xx)
SYKES’ ability to expand its global presence through strategic
alliances and selective acquisitions, (xxi) SYKES’ ability to
continue to establish a competitive advantage through sophisticated
technological capabilities, (xxii) the ultimate outcome of any
lawsuits or penalties (regulatory or otherwise), (xxiii) SYKES’
dependence on trends toward outsourcing, (xxiv) risk of
interruption of technical and customer engagement center operations
due to such factors as fire, earthquakes, inclement weather and
other disasters, power failures, telecommunications failures,
unauthorized intrusions, computer viruses and other emergencies,
(xxv) the existence of substantial competition, (xxvi) the ability
to obtain and maintain grants and other incentives, including tax
holidays or otherwise, (xxvii) risks related to the integration of
the businesses of SYKES, including the Qelp, Clearlink, WhistleOut,
Symphony and Taylor Media Corporation acquisitions and the
impairment of any related goodwill, (xxviii) the ability to execute
on initiatives to address inefficiencies around recruitment and
retention in the U.S. and rationalize underutilized capacity
methodically and (xxix) other risk factors listed from time to time
in SYKES’ registration statements and reports as filed with the
Securities and Exchange Commission. All forward-looking statements
included in this press release are made as of the date hereof, and
SYKES undertakes no obligation to update any such forward-looking
statements, whether as a result of new information, future events,
or otherwise.
For additional information
contact:Subhaash KumarSykes Enterprises, Incorporated(813)
233-7143
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