LITTLE ROCK, Ark.–(BUSINESS WIRE)–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
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
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
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.
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
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
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.
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,
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.
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.
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