NEW YORK, NY - July 10, 2002 - LivePerson, Inc. (NASDAQ: LPSN), a leading provider of technology facilitating real-time online customer interaction, today announced that it had acquired certain assets of Silicon Valley-based NewChannel, Inc. in a cash transaction. NewChannel is a provider of solutions that enable Global 2000 companies to increase revenue and sales productivity by leveraging the web for customer acquisition. The deal will transfer all existing customer contracts of NewChannel, a privately held firm, to LivePerson effective immediately.
NewChannel's customer list includes a cross-section of Global 2000 financial service, telecommunications and software firms based in the U.S. and Canada, and is expected to increase LivePerson's current monthly revenue by approximately 12% with minimal incremental costs. The purchase price will be based on future revenue generated by LivePerson from the former NewChannel client base. The net cash impact of the transaction is expected to be less than $1.0 million, and management expects the transaction to be net cash flow positive within approximately twelve months.
Existing NewChannel clients will have immediate access to the entire LivePerson product line. "We expect to enable NewChannel's strong client base to rapidly increase their real-time sales and customer support capabilities using the rich features provided in the LivePerson Chat and MultiCARE products," said Robert LoCascio, CEO of LivePerson. "They will be able to complement their existing online initiatives with real-time, proactive sales, marketing and support capabilities. We will also continue to provide these clients the proactive monitoring and sales capabilities that enabled NewChannel to successfully build such a strong customer base."
"We are very excited about the opportunity this transaction brings to NewChannel's customers," said Alan Weisleder, CEO of NewChannel, Inc. "LivePerson's product suite will support our customers' efforts to maximize the profitability of their interactions with customers on their website."
LivePerson currently serves American Airlines Credit Union, Ameritrade, EarthLink, eBay, Federated Stores, Godiva, QVC, Radian Guaranty and more than 3,000 other businesses.
LivePerson is a leading Application Service Provider (ASP) of technology facilitating real-time sales and customer service for companies doing business on the Internet. The LivePerson service enables online businesses to communicate securely with Internet users in real time, thereby enhancing the online experience. With real-time solutions consisting of chat, real-time marketing and selling tools, a self-service FAQ product and email management, LivePerson offers clients the opportunity to increase sales, lower customer service costs and increase responsiveness to customer needs. LivePerson is headquartered in New York City.
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SOURCE: LivePerson, Inc.
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