Sharpens Focus on Marketing and Data
Services
Expands Share Repurchase Program
Announces Preliminary Fiscal 2015
Results
Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and
software-as-a-service company, today announced that it has entered
into a definitive agreement to sell its IT Infrastructure
Management business (Acxiom IT) to Charlesbank Capital Partners
(Charlesbank) and M/C Partners for total cash consideration of up
to $190 million.
“In the last three years, we have taken a number of steps to
tighten our strategic direction,” said Acxiom CEO Scott Howe. “This
transaction represents the next phase in our journey to focus
Acxiom on growing its core Marketing and Data Services business,
and extending its leadership in onboarding and connectivity.”
“We are excited about the future of Acxiom IT under the new
ownership group,” continued Scott Howe. “Their deep expertise,
substantial capital base and commitment to IT outsourcing will give
Acxiom IT a strong platform for growth and enhance its ability to
deliver innovative solutions to its customers. Charlesbank and M/C
Partners are gaining a deeply talented team that I am confident
will flourish under their direction.”
Ryan Carroll, a Managing Director at Charlesbank, added, “We are
excited about the opportunity to work with Acxiom and our partner,
M/C Partners, to provide the financial and operational resources to
facilitate Acxiom IT’s growth and continued success.”
“M/C and Charlesbank are committed to supporting the Company’s
mission of providing solutions that help its clients deliver
better, faster and more cost-effective results,” said Gillis
Cashman, a Managing Partner at M/C Partners.
Acxiom IT Divestiture
Under the terms of the agreement, total potential cash
consideration is approximately $190 million, comprised of $140
million in cash at closing and up to $50 million in contingent
payments subject to certain performance metrics. In addition,
Acxiom will receive a five percent profits interest in the
go-forward Company.
The sale is expected to close in the second quarter of fiscal
2016, following the satisfaction of regulatory requirements and
other customary closing conditions. Acxiom will report ITO as a
component of discontinued operations beginning in the first quarter
of fiscal 2016.
Acxiom will use proceeds from the sale to pay down debt and to
fund the expansion of its share repurchase program. As part of the
revised program, Acxiom’s Board of Directors has increased its
share repurchase authorization by $50 million to $300 million and
extended the duration of the program through December 31, 2016.
Since inception of the program in August 2011, the Company has
repurchased 12.9 million shares, or approximately 16% of the
outstanding common stock, for $202 million.
Fiscal 2015 Results
Acxiom today also announced its preliminary results for its
fourth quarter and fiscal year ended March 31, 2015. The Company
expects to report:
Fourth Quarter:
- Total revenue from continuing
operations of $257 million compared to $269 million in the fourth
quarter of fiscal 2014.
- Net loss per diluted share from
continuing operations of $0.08 compared to a net loss of $0.33 in
the prior year period.
- Non-GAAP diluted earnings per share of
$0.24 compared to earnings per share of $0.26 in the prior year
period. Earnings per share in the current period was positively
impacted by a tax adjustment resulting in a $0.04 improvement.
Full Year:
- Total revenue from continuing
operations of $1,020 million compared to $1,062 million in fiscal
2014.
- Net loss per diluted share from
continuing operations of $0.12 compared to earnings per share of
$0.14 in the prior year.
- Non-GAAP diluted earnings per share of
$0.78 compared to earnings per share of $0.95 in the prior year.
Earnings per share in both periods were positively impacted by a
tax adjustment resulting in a $0.04 improvement.
Non-GAAP results exclude unusual items, non-cash compensation
and acquired intangible asset amortization.
The Company will issue its fiscal year 2015 fourth quarter and
full year earnings release on Thursday, May 21, after the financial
markets close. A conference call will be held at 4:00 p.m. CDT the
same day to discuss the results.
Conference Call
Acxiom will hold a conference call at 3:30 p.m. CDT today to
further discuss this announcement. The number for the conference
call is 1 (877) 710-0217. The confirmation code is 47260412. If you
wish to participate in the call, please dial in approximately five
minutes before the call. As an alternative, this call will be
broadcast live over the Internet and can be accessed by all
interested parties through www.acxiom.com. A replay of the webcast
will be accessible through the same link shortly after the
call.
About Acxiom
Acxiom is an enterprise data, analytics and
software-as-a-service company that uniquely fuses trust, experience
and scale to fuel data-driven results. For over 40 years, Acxiom
has been an innovator in harnessing the most important sources and
uses of data to strengthen connections between people, businesses
and their partners. Utilizing a channel and media neutral approach,
we leverage cutting-edge, data-oriented products and services to
maximize customer value. Every week, Acxiom powers more than a
trillion transactions that enable better living for people and
better results for our 7,000+ global clients. For more information,
please visit www.acxiom.com.
About Acxiom IT
Acxiom IT provides infrastructure management solutions that help
clients deliver better, faster, more cost-effective results.
Addressing all IT needs – from hosting to cloud to advisory –
Acxiom ranks #1 in customer satisfaction by The Black Book of
Outsourcing and has consistently appeared on the Gartner Magic
Quadrant for Data Center Outsourcing. Recognized in the
InformationWeek 500 for technology innovations for nine consecutive
years, Acxiom powers and secures over one trillion transactions per
week consisting of some of the most sensitive data in the world.
For 26 years, companies that require high-performance, secure,
reliable IT have turned to Acxiom and remained loyal clients – ten
years on average. To learn more, please visit www.acxiomIT.com.
About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a
middle-market private equity investment firm managing more than $3
billion of capital. Charlesbank focuses on management-led buyouts
and growth capital financings, generally investing $50 million to
$150 million per transaction in companies with enterprise values of
$100 million to $750 million. The firm seeks to partner with strong
management teams to build companies with sustainable competitive
advantage and excellent prospects for growth. For more information,
visit www.charlesbank.com.
About M/C Partners
M/C Partners is a private equity firm focused exclusively on the
communications, media, and information technology sectors. The firm
has invested over $1.5 billion into nearly 100 companies in those
sectors. Companies M/C has backed include Fusepoint, ICG
Communications, Involta, Legendary Pictures, Lightower, MetroPCS,
and Zayo Group. The firm has strong institutional backing from the
nation's leading pension funds and endowments as well as a long
track record of success. M/C Partners has offices in Boston and San
Francisco. For more information, visit www.mcpartners.com.
Forward-Looking Statements
This release may contain forward-looking statements including,
without limitation, statements concerning the anticipated
disposition of Acxiom IT and the use of proceeds generated
therefrom. Such forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially. The following are factors, among others, that could
cause actual results to differ materially from these
forward-looking statements: the possibility that we may be not
receive the consents and approvals required for the disposition;
the possibility that the anticipated benefits from the disposition
may not be fully realized or may take longer to realize than
expected; the possibility that certain contracts may not generate
the anticipated revenue or profitability or may not be closed
within the anticipated time frames; the possibility that
significant customers may experience extreme, severe economic
difficulty or otherwise reduce the amount of business they do with
us; the possibility that we will not successfully complete customer
contract requirements on time or meet the service levels specified
in the contracts, which may result in contract penalties or lost
revenue; the possibility that data suppliers might withdraw data
from us, leading to our inability to provide certain products and
services to our clients, which could lead to decreases in our
operating results; the possibility that we may not be able to
attract, retain or motivate qualified technical, sales and
leadership associates, or that we may lose key associates; the
possibility that we may be unable to quickly and seamlessly
integrate a new chief executive officer and chief financial
officer; the possibility that we will not be able to continue to
receive credit upon satisfactory terms and conditions; the
possibility that negative changes in economic conditions in general
or other conditions might lead to a reduction in demand for our
products and services; the possibility that there will be changes
in consumer or business information industries and markets that
negatively impact the company; the possibility that the historical
seasonality of our business may change; the possibility that we
will not be able to achieve cost reductions and avoid unanticipated
costs; the possibility that the fair value of certain of our assets
may not be equal to the carrying value of those assets now or in
future time periods; the possibility that changes in accounting
pronouncements may occur and may impact these forward-looking
statements; the possibility that we may encounter difficulties when
entering new markets or industries; the possibility that we could
experience loss of data center capacity or interruption of
telecommunication links; and other risks and uncertainties,
including those detailed from time to time in our periodic reports
filed with the Securities and Exchange Commission, including our
current reports on Form 8-K, quarterly reports on Form 10-Q and
annual reports on Form 10-K, particularly the discussion under the
caption “Item 1A, RISK FACTORS” in our Annual Report on Form 10-K
for the year ended March 31, 2014, which was filed with the
Securities and Exchange Commission on May 28, 2014.
We undertake no obligation to update the information contained
in this press release or any other forward-looking statement.
Acxiom is a registered trademark of Acxiom Corporation.
To automatically receive Acxiom Corporation financial news by
email, please visit www.acxiom.com and subscribe to email
alerts.
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version on businesswire.com: http://www.businesswire.com/news/home/20150520006507/en/
Investor Relations Contact:Acxiom Investor
RelationsLauren Dillard,
650-372-2242investor.relations@acxiom.comorPublic Relations
Contact:Acxiom Corporate CommunicationsInes Gutzmer,
404-434-0237ines.gutzmer@acxiom.comGACXMEACXM
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