Exhibit 99.2
[TECHTEAM LOGO] NEWSRELEASE
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NASDAQ-NM -- "TEAM"
FOR IMMEDIATE RELEASE, Monday, October 3, 2005
TECHTEAM GLOBAL ANNOUNCES ACQUISITION OF AKELA INFORMATIQUE SRL IN BUCHAREST,
ROMANIA
ACQUISITION WILL ESTABLISH TECHTEAM'S PRESENCE IN THE SOFTWARE DEVELOPMENT
MARKET AND EXPAND ITS SERVICE OFFERINGS IN THE SYSTEMS INTEGRATION AND
CONSULTING SERVICES BUSINESS SEGMENT
SOUTHFIELD, MICHIGAN, October 3, 2005...TECHTEAM GLOBAL, INC., (Nasdaq: TEAM), a
worldwide provider of information technology (IT) and business process
outsourcing support services, today announced that it has purchased all of the
outstanding stock of AKELA INFORMATIQUE SRL (Akela), effective as of today.
Akela is a premier provider of custom software solutions and off-shore
development center outsourcing services headquartered in Bucharest, Romania. In
addition to providing software product design services, Akela supplies
application development, migration, implementation, and maintenance support for
its more than 200 clients in Romania, France, the United Kingdom, Switzerland,
Belgium, Italy, Sweden and the United States. Founded in 1998, Akela also
implements human resource information systems, integrated management systems,
and document management systems, has been a Microsoft Certified Partner since
2000, and has implemented and maintained an ISO 9001:2000 certified quality
management system, designed according to the SEI Capability Maturity Model
Integration (SEI CMMI) and ISO 12207 norms and regulations.
Akela posted total revenues of approximately $1.23 million and net income of
approximately $184,000 for the sixth months ended June 30, 2005 (unaudited). The
company also reported revenue of $1.38 million and net income of $202,000 for
its fiscal year ended December 31, 2004. Currently Akela has over 100 employees
and the company's client list includes Orange S.A., meter2cash Ltd., Memba Ltd.,
OAO Lukoil, Softissimo, Quask, Guillemot Inc., and Operantis. Further
information about the company may be obtained from its web site at www.akela.ro.
The terms of the transaction included a purchase price of euro2.45 million in
cash and euro250,000 worth of TechTeam common stock, with an additional sum of
up to euro450,000 that may be paid by TechTeam upon the attainment of specified
gross profit objectives by Akela during its 2006 and 2007 fiscal years 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
[TECHTEAM LOGO] NEWSRELEASE
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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 immediate entree it provides to us in the important off-shore software
development and outsourcing services technology sector. Akela 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 Akela join the TechTeam Global family of companies, which
includes TechTeam Global SRL, an IT and business process outsourcing services
company that TechTeam established in Bucharest, Romania in 2004. The acquisition
of Akela will increase TechTeam's employee base to over 250 IT professionals in
Bucharest with access to several new global customers, technologies, and
vertical markets. The continued expansion of TechTeam's IT consulting and
systems integration business segment, which will occur as a result of the Akela
acquisition, will complement our other established services, including
diversified IT outsourcing services, government technology services, technical
staffing, and learning services business segments. The addition of Akela 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, Lucian Butnaru, founder, Managing
Director, and Chief Executive Officer of Akela, 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, call center,
and systems integration solutions, superior overall customer value proposition,
and outstanding technical tools -- combined with their financial strength and
extensive physical presence throughout Europe -- 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, "In January 2005 Akela was named one of the Top 100 Outsourcing
Suppliers Worldwide, and one of the Top Five Outsourcing Companies in Central
and Eastern Europe, by expert offshore consultant neoIT and CMP's Managing
Offshore newsletter. Akela represents an exceptional group of employees who will
significantly strengthen TechTeam's service delivery capabilities."
TECHTEAM GLOBAL, INC. is a worldwide provider of information technology and
business process outsourcing support services to Fortune 1000 corporations,
multinational companies, product providers, small and mid-sized companies, and
government entities. TechTeam'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 unique expertise and experience in providing information
technology support solutions, including diversified IT outsourcing services,
government technology services, IT consulting and systems integration, technical
staffing, and learning services. For information about TechTeam Global, Inc. 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."
Headquartered in Southfield, Michigan, TechTeam also has locations in Dearborn,
Michigan; Davenport, Iowa; Chantilly and Herndon, Virginia; Portsmouth, Rhode
Island; Bethesda and Germantown, Maryland; Brussels and Gent, Belgium; Uxbridge,
United Kingdom; Cologne, Germany; Gothenburg, Sweden; and Bucharest, Romania.
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27335 West 11 Mile Road, Southfield, Michigan 48034
Telephone (248) 357-2866 - Fax (248) 357-2570 - www.techteam.com
[TECHTEAM LOGO] NEWSRELEASE
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AKELA INFORMATIQUE SRL, headquartered in Bucharest, Romania, is a premier
provider of custom software solutions and off-shore development center (ODC)
outsourcing services to more than 200 clients from Romania, France, the United
Kingdom, Switzerland, Belgium, Italy, Sweden and the United States. In addition
to delivering custom software solutions and ODC services, Akela implements human
resource information systems, integrated management systems, and document
management systems.
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. Specifically, there
are significant risks associated with acquisitions, including the Company's
ability to successfully integrate this acquisition on a timely basis, the
retention of key employees, and the retention of key customers. 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 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.
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CONTACTS:
TECHTEAM GLOBAL, INC. TECHTEAM GLOBAL, INC.
David W. Morgan Norma F. Robbins
Vice President, Chief Financial Officer, Investor Relations Manager
and Treasurer (248) 357-2866
(248) 357-2866 nrobbins@techteam.com
dmorgan@techteam.com
27335 West 11 Mile Road, Southfield, Michigan 48034
Telephone (248) 357-2866 - Fax (248) 357-2570 - www.techteam.com