Interactive Intelligence Acquires a Portion of ATIO’s Business Assets
On Jan. 13, 2012 Interactive Intelligence announced that it has signed an agreement to purchase select Interactive Intelligence-related contact center assets of its South African-based reseller, ATIO Corp. Pty Ltd.
The acquisition expands Interactive’s existing operations throughout South Africa and sub-Saharan Africa.
Additional details regarding the acquisition are included in the FAQ statements below. A copy of the press release is available
here.
Q: What are the disclosed details of the acquisition?Interactive Intelligence Group Inc. has purchased select assets of ATIO’s Interactive Intelligence-related contact center business in an all-cash transaction. Under the terms of the agreement, effective Jan. 1, 2012, these assets are now owned by Interactive Intelligence Group Inc. The assets acquired from ATIO will operate as part of the Interactive Intelligence sales, marketing, support, and services organization in South Africa and sub-Saharan Africa. Interactive Intelligence will provide additional information in an event footnote in its first quarter Form 10-Q, which it will file with the Security and Exchange Commission (SEC) in May.
Q: What was the size of ATIO’s Interactive Intelligence business at the time of acquisition?At the time of the acquisition, ATIO employed approximately 40 people dedicated to the Interactive Intelligence business. Its principal office is in Johannesburg. ATIO has been in business since 1986 and has operated as an authorized Interactive Intelligence reseller since 2002.
Q: What were the primary motivations for Interactive Intelligence in making the acquisition?Interactive Intelligence has experienced strong growth in South Africa over the last five years. This acquisition is part of Interactive Intelligence’s strategy of expanding in key geographies, which include the U.K., Germany, Australia/New Zealand, Japan, Brazil, and now Africa. This strategy is an effective way to further accelerate growth in South Africa and sub-Saharan Africa through the immediate addition of sales and support staff, and a good customer base of referencable, brand-name customers throughout the region.
Q: How will customers benefit from the acquisition?All customers in the region will benefit from a larger, more experienced Interactive Intelligence sales and support team. Specifically, the ATIO support and professional services teams are experienced with the full complement of the Interactive Intelligence product line. This increase in staff will enable Interactive Intelligence to provide more services and to better respond to customer inquiries and support needs. As customers expand their businesses and use of the Interactive Intelligence products, they will find value in the expanded staff and knowledge base.
Q: How many total employees will Interactive Intelligence have in the region upon completion of the acquisition?Following the acquisition, Interactive Intelligence will employ approximately 40 people serving South Africa and sub-Saharan Africa.
Q: What will become of the ATIO brand?The ATIO brand will continue to be used by the ATIO Corporation, which sells and supports other non-Interactive Intelligence products. ATIO is a large company with several interests in the ICT sector, of which the Interactive Intelligence assets were only a subset. For the acquired assets, branding will be converted to the Interactive Intelligence name, and the new converted company will operate as Interactive Intelligence South Africa Pty Ltd. All brand transitions are planned for completion within the next ninety days.
Q: What does the acquisition mean for Interactive Intelligence’s partner strategy moving forward?Interactive Intelligence remains committed to a “sell-through-partner” strategy in South Africa and sub-Saharan Africa. As Interactive Intelligence has done in other parts of the world where it has acquired a distribution partner, the company will continue to support its other partners in the region. The company will also actively recruit additional partners in the region. Interactive Intelligence has shown an ability to successfully operate a mixed direct and partner-selling operation. The resources gained through the acquisition will benefit all existing and future partners.
Q: What are the future support arrangements for existing ATIO customers?Interactive Intelligence will honor existing support contracts entered into between ATIO and its customers. Over time, customers will be transitioned to Interactive Intelligence support agreements. Until notified, ATIO customers will continue to call their regular number for support.
Q: Are there planned changes for the physical facilities and locations?As part of the transaction, Interactive Intelligence will occupy one of ATIO’s buildings in Johannesburg, which will now function as its regional headquarters serving all of Africa.
Q: What is the timeline to have all ATIO functions, including sales, support, marketing, and finance completely integrated into the Interactive Intelligence organization?Six months to completion.
Financial/Investor Relations InquiriesSteve Head, CFO, Interactive Intelligence
(317) 715-8412
steve.head@inin.com
Media/Industry Analyst InquiriesChristine Holley
Director of Market Communications
(317) 715-8220
christine.holley@inin.com