EXHIBIT 99.1
[TECH TEAM LOGO] NEWS RELEASE
NASDAQ/NM -- "TEAM"
FOR IMMEDIATE RELEASE, Monday, January 3, 2005
TECHTEAM GLOBAL ANNOUNCES ACQUISITION OF SYTEL, INC.
ACQUISITION WILL FURTHER ENLARGE TECHTEAM'S PROFESSIONAL SERVICES AND SYSTEMS
INTEGRATION BUSINESS SEGMENT AND GREATLY EXPAND THE COMPANY'S GOVERNMENT
TECHNOLOGY SYSTEMS PRESENCE IN NORTH AMERICA
SOUTHFIELD, MICHIGAN, January 3, 2005...TECHTEAM GLOBAL, INC., (Nasdaq: TEAM), a
global provider of information technology and business process outsourcing
support services, today announced that it has purchased all of the outstanding
stock of SYTEL, INC., effective as of today. Sytel is a diversified information
technology services and solutions company headquartered in Bethesda, Maryland,
providing managed network services and advanced enterprise solutions --
including network design, management, and support; network security services;
help desk support; program design and implementation; and e-government and
e-learning solutions -- to several departments of the federal government. Sytel
has enjoyed long and substantial customer-supplier relationships with several
branches of the United States government, including the Department of State,
Department of Homeland Security, Department of Defense, Department of Health and
Human Services, Department of Commerce, the Export-Import Bank, the Drug
Enforcement Administration, and the National Institutes of Health.
Sytel posted total revenues of approximately $21.1 million and net income of
approximately $1.35 million for the nine months ended September 30, 2004. The
company also reported revenue of $28.3 million and net income of $1.36 million
for its fiscal year ended December 31, 2003. With over 300 employees, the
company also has an office in Herndon, Virginia and conducts business at 20
additional locations. Further information about the company may be obtained from
its web site at www.sytel.com.
The terms of the transaction included a purchase price of $18.5 million, with an
additional sum of up to $2.0 million that may be paid by TechTeam upon the
renewal of a certain customer contract which is scheduled to expire in early
2005. Further payments may be made to Sytel's shareholders during the two years
immediately following the acquisition upon Sytel's attainment of specified gross
profit objectives and the satisfaction of various other conditions. Complete
terms of the transaction, including a copy of the Stock Purchase Agreement, will
be contained in a Form 8-K filing to be made by TechTeam with the United States
Securities and Exchange Commission.
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27335 West 11 Mile Road, Southfield, Michigan 48034 - Telephone (248) 357-2866
- Fax (248) 357-2570 - www.techteam.com
[TECH TEAM LOGO] NEWS RELEASE
Commenting on this announcement, William F. Coyro, Jr., TechTeam's President and
Chief Executive Officer, stated, "We are very excited about this acquisition and
the significant expansion and presence it will provide us in the rapidly growing
government technology systems sector. Sytel is a recognized leader in its
market, has a reputation for providing outstanding customer service, and has a
highly skilled and client-focused work force. We are delighted to have Sytel
join the TechTeam Global family of companies, which includes Digital Support
Corporation, an outstanding company that TechTeam acquired one year ago. Digital
Support Corporation provided TechTeam with an important, immediate and accretive
entree into the federal and local government services markets. The continued
expansion of TechTeam's professional services and systems integration business
segment, which will occur as a result of the Sytel acquisition, will complement
our established call center, help desk, computer desk-side support, technical
staffing, and training service business segments. The addition of Sytel to
TechTeam will be immediately accretive to TechTeam's earnings in 2005 and will
help us continue to expand our market share and revenue growth within our core
business groups."
Also commenting on this announcement, Jeannette Lee White, President and Chief
Executive Officer of Sytel, stated "We are equally delighted to be joining
forces with a company of TechTeam Global's reputation and stature. We believe
that the transaction with TechTeam will allow us to be more successful than we
could have otherwise been as an independent company. TechTeam's extensive
experience in delivering integrated help desk and call center solutions,
superior overall customer value proposition, and outstanding technical tools --
combined with their financial strength and complementary acquisition of Digital
Support Corporation -- will allow us to grow much faster together than we could
have by ourselves. We are very excited about this transaction and look forward
to becoming part of the TechTeam Global organization."
Coyro added, "Jeannette Lee White is an outstanding business leader and
visionary. In 1998 she was named `Executive of the Year' by the High Technology
Council of Maryland and one of the `Top 100 Greatest Entrepreneurs in America'
by Success magazine that same year. Sytel represents an exceptional group of
employees who will significantly strengthen TechTeam's service delivery
capabilities."
The Chesapeake Group served as investment advisors to TechTeam Global in this
transaction. The Windsor Group, LLC served as investment advisors to Sytel.
Butzel Long, PC served as legal counsel to TechTeam in this transaction.
TECHTEAM GLOBAL will host a teleconference call to discuss today's announcement
at 11:00 a.m. EST, on Tuesday, January 4, 2005.
To access a simultaneous Webcast of the teleconference, go to the TechTeam
Global web site at www.techteam.com and click on the "Investor" tab to access
the Webcast icon. From this site, you can download the necessary software and
listen to the teleconference. TechTeam encourages you to review the site before
the teleconference to ensure that your computer is configured properly.
A taped replay of the call will be available beginning at approximately 1:00
p.m. EST, Tuesday, January 4, 2005. This toll-free replay will be available
until 11:00 p.m. EST, Tuesday, January 11, 2005. To listen to the teleconference
replay, call 800-633-8284. (Outside the United States, call +1-402-977-9140.)
When prompted, enter the TechTeam reservation number: 21226676.
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27335 West 11 Mile Road, Southfield, Michigan 48034 - Telephone (248) 357-2866
- Fax (248) 357-2570 - www.techteam.com
[TECH TEAM LOGO] NEWS RELEASE
TECHTEAM GLOBAL, INC. is a global provider of information technology and
business process outsourcing support services. The Company's ability to
integrate computer services into a flexible, total single point of contact
(SPOC) solution is a key element of its success. Partnerships with some of the
world's "best-in-class" corporations provide TechTeam with unparalleled
experience and expertise in providing the following IT support solutions: help
desk/call center services, technical staffing, professional services/systems
integration, and training programs. For information about TechTeam Global and
its outstanding services, call 1-800-522-4451 or visit www.techteam.com.
TechTeam's common stock is traded on the NASDAQ National Market under the symbol
"TEAM."
SYTEL, INC., headquartered in Bethesda, Maryland, provides professional services
empowering Government enterprises with solutions to address tomorrow's
challenges through better use of information and information technology
investments. The company specializes in enterprise information portals,
knowledge and content management, competitive sourcing solutions, e-forms
implementation, applications development, information assurance services, and
network and help desk operations.
SAFE HARBOR STATEMENT
The statements contained in this press release that are not purely historical,
including statements regarding the Company's expectations, hopes, beliefs,
intentions, or strategies regarding the future, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements include statements regarding, among other things, the potential
impact of this acquisition on the Company's revenue and earnings performance
going forward. Forward-looking statements may be identified by words including,
but not limited to, "anticipates," "believes," "intends," "estimates,"
"promises," "expects," "should," "conditioned upon," and similar expressions.
Prospective investors are cautioned that any such forward-looking statements are
not guarantees of future performance and involve risks and uncertainties, and
that actual results may differ materially from those projected in the
forward-looking statements as a result of various factors. There are significant
risks associated with the Company's ability to successfully integrate this
acquisition on a timely basis. Further, there can be no assurance that it will
have the impact on the Company's financial condition and results of operations
contemplated in this release. The factors that could affect the anticipated
impact include but are not limited to the inability to retain government
business or key employees of the acquired company. The forward-looking
statements included in this press release are based on information available to
the Company on the date hereof, and the Company assumes no obligation to update
any such forward-looking statement. Prospective investors should also consult
the risks described from time to time in the Company's Reports on Forms 8-K,
10-Q, and 10-K filed with the United States Securities and Exchange Commission.
# # #
CONTACTS:
TECHTEAM GLOBAL, INC.
TECHTEAM GLOBAL, INC. David W. Morgan
William F. Coyro, Jr. Vice President, Chief Financial Officer,
President and Chief Executive Officer and Treasurer
(248) 357-2866 (248) 357-2866
wcoyro@techteam.com dmorgan@techteam.com
27335 West 11 Mile Road, Southfield, Michigan 48034 - Telephone (248) 357-2866
- Fax (248) 357-2570 - www.techteam.com