BILL.L Regulatory News (BILL)

3 Jul 2006 08:30

Billing Services Group Limited03 July 2006 BSG Clearing Solutions Acquires Business Unit From VoiceLog for US$15.63 Million GLENVIEW, Illinois - July 3, 2006 - BSG Clearing Solutions North America, LLC, awholly owned subsidiary of Billing Services Group Limited (AIM: BILL), thetelecom industry's leading clearing and settlement, payment and financial riskmanagement solutions group, today announced the acquisition of VoiceLog, LLC'sthird party verification (TPV) business. VoiceLog is the world's leadingprovider of third party verification services. The all-cash deal values VoiceLogat US$15.63M and will be financed from the existing resources and facilities ofthe Group. The transaction closed on Friday 30th of June. Highlights of the transaction include: •Immediate earnings contribution; •fully complementary to existing BSG operations and BSG customers; •broadens BSG's customer base to include utility groups and financial services companies; •further diversifies the Company's revenue streams through the wide array of call-center services; •consistent with BSG's stated growth strategy. Commenting on the acquisition, Roland J. Bopp, CEO of BSG, said: "VoiceLog'sthird party verification business has a great reputation in the industry andoffers us considerable benefits of scale and market penetration. Theircomplementary services reinforce our business proposition and for over 5 years,we've cultivated a relationship that makes this a very natural conclusion. I amdelighted to welcome the VoiceLog team to BSG." VoiceLog, LLCFounded in 1996, VoiceLog, LLC has grown from an original idea into the world'sleading provider of third party verification services, with over 300 clients inEurope, the U.S. and Canada. Following the acquisition, 30 employees includingVoiceLog founder Larry Leikin will remain with the business. Mr. Leikin willcontinue in his role as General Manager of the TPV business for BSG. During the year ended 31 December 2005 the TPV business recorded unauditedrevenues of $7.6 million and net income before taxation of $2.4 million aftercharging $0.5 million of depreciation and amortisation. The business hadunaudited assets of $1.8 million at 31 December 2005. This information has beenextracted from unaudited segment information contained in the audited accountsof VoiceLog, LLC at and for the 12 months ended 31 December 2005. The company has unrivalled expertise in principal areas of third partyverification, E911 notification, and electronic verification. Its software andservices are capable of transacting in 24 different spoken languages. •Third Party Verification ("TPV"): VoiceLog, LLC is contracted by telecom providers, utility groups and financial services companies to gain independent, authoritative confirmation that companies or individuals have agreed to change to new service providers. In the U.S., VoiceLog has an approximate 60% market share in TPV by number of clients. TPV is required or authorised by the U.S. Federal Communications Commission (FCC) in most states for telecom service changes, and by many states for changes in electric and natural gas service. In addition, the U.S. Federal Trade Commission requires a process similar to TPV for many orders and many clients use TPV to ensure reliable documentation of those orders. VoiceLog offers both automated and live third party verification utilizing the latest technologies such as speech recognition and distributed live agents. •In-Language Support: VoiceLog's Any Language on EarthTM provides translation and verification services in any language a client requires. In addition to the current list of 24 different languages including Arabic, Hebrew, Hmong and Tagalog, VoiceLog will locate and train new agents to accommodate any special language requests. •Electronic Letters of Authorization (eLOA): VoiceLog's NetTPVTM verifies telecom, Internet or other service orders with the security and credibility of third party verification and the legal standing of a fully qualified electronic signature. •Reg E Xpress: Reg E XpressTM is a phone-based electronic signature process specifically designed for one-off and recurring automated demand draft and debit authorization. The VoiceLog system records necessary information which customers can retrieve via a toll-free number. A written copy is then sent to the customer for their records. •E911 Notification: VoiceLog's E911AlertTM notifies VoIP customers of E911 service, while gaining their affirmative acknowledgement of the notice. The U.S. FCC requires VoIP carriers who connect with the public telephone network to notify their customers of any limitations to their E911 service, including where and under what conditions it may not be available. Importantly, VoIP carriers must also obtain "affirmative acknowledgement" from every customer that they have received and understood that information. Contacts:Julian Walker - Investor relationsGainsborough Communications Consultancy+44 (0)20 7190 1705jw@gainsboroughcomms.com Erin BrennanBlanc & Otus Public Relations - US media relations+1 512 372 6653ebrennan@blancandotus.com Trudie ParsonsBlanc & Otus Public Relations - UK trade media relations+44 (0) 207 413 3229tparsons@blancandotus.co.uk About bsg (www.bsgclearing.com)Billing Services Group Limited (BSG) is a leading global provider of clearing,settlement, payment and financial risk management solutions for communicationsservice providers. Listed on the London Stock Exchange (AIM: BILL), the companyhas to date made two acquisitions - EDS Interoperator Services GmbH (August2005) and United Clearing Plc (March 2006). Through its operating business units, the Group processes over 20 billiontransactions annually for 630 of the world's largest communications companiesthroughout Europe, North America and Asia. Recent developments include:- renewal of agreement with Cincinnati Bell for GSM internationalroaming financial clearing and settlement services;- availability of BSG's Roaming Information Service in Europe and Asia; and- corporate debt refinancing with a new $330 million multi-currency creditfacility. With a ubiquitous, scalable platform and an extensive portfolio of clearinghouseservices for wireless, fixed-line, WLAN, content and next-generation networks,BSG monetizes network transactions by facilitating financial settlements.Positioned at the centre of network commerce, BSG has the ability to processaccurately and manage billions of financial transactions with the higheststandards of security, reliability and trust, all in real time. About VoiceLogVoiceLog, LLC is the world's leading provider of third party verification, withover 300 clients in the US, Canada and Europe. VoiceLog has developed unrivalledexpertise in regulatory compliance, automated and live agent verificationscripting, recording, storage, retrieval and reporting. With over 10 years ofexperience and over 100 million calls recorded, it is no wonder that moretelecom companies choose VoiceLog than all other TPV providers combined. Formore information about VoiceLog, call 240-631-8392 or visit VoiceLog on the webat www.voicelog.com. All company or product names are trademarks and/or registered trademarks. ### This information is provided by RNS The company news service from the London Stock Exchange