BPO Management Services, Inc. in Definitive Agreement to Merge with netGuru, Inc.IRVINE, Calif. -- Privately held BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra Management Services, Inc. (BPOMS) entered into a definitive agreement to merge with publicly held netGuru, Inc. (netGuru) (Nasdaq:NGRU), a provider of document management software and outsourced information technology (IT) services. The transaction involves a reverse merger in which BPOMS would emerge as the surviving public entity, and the U.S.-based business of netGuru would be integrated into BPOMS to provide customers of both companies with a broader service offering from which to fulfill their back-office outsourcing needs. In a simultaneous transaction simultaneous transaction See riskless transaction. the Indian operations of netGuru will be divested, and BPOMS will enter into a support agreement with the India-based company in order to offer its customers the economic efficiencies and technology expertise inherent with offshore service providers. BPOMS, a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. founded in July 2005, offers a wide range of BPO-on-demand services, including human resources (HRO HRO Housing Referral Office HRO Rostock (Germany, auto license plate) HRO Human Resources Outsourcing HRO Hogeschool Rotterdam (The Netherlands) HRO Human Resources Office HRO Ham Radio Outlet ), information technology (ITO Ito, city (1990 pop. 71,223), Shizuoka prefecture, central Honshu, Japan, on the Izu Peninsula and the Sagami Sea. It is an important fishing port and hot spring resort. See indium. ), enterprise content management (ECM (1) (Enterprise Change Management) See version control and configuration management. (2) (Error Correcting Mode) A Group 3 fax capability that can test for errors within a row of pixels and request retransmission. ), and finance and accounting to support the back-office functions of middle-market enterprises. The merger with netGuru would add key document management and information technology services that would be integrated into BPOMS's operations and further enhance BPOMS's existing services and capabilities. Headquarters for the merged companies are planned for Yorba Linda, California Yorba Linda is a community in Orange County, California, approximately 13 miles northeast of Downtown Santa Ana, and 40 miles southeast of Downtown Los Angeles. As of the 2000 census, the city had a total population of 58,918. , and would complement existing BPOMS operations in San Francisco; Branchburg, New Jersey; and the Canadian cities of Winnipeg, Regina, and Toronto. These offices would be joined by netGuru offices located in Boston and Wurzburg, Germany, to provide access to both the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and European marketplace. BPOMS Chief Executive Patrick Dolan commented: "Our merger with netGuru represents a key step in our broader plan to offer a comprehensive set of cost-competitive back-office outsourcing services to the thousands of companies in the underserved middle market. Middle-market companies understand the significant benefits of BPO and potential cost savings that an experienced service provider offers. But the problem lies in the absence of experienced and suitably scaled providers who are capable of efficiently serving that market; therefore, demand by middle-market companies for BPO services is clearly not being met. "Traditionally, comprehensive back-office BPO services have been available only through large-scale Tier-1 providers such as IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , ACS (Asynchronous Communications Server) See network access server. , Accenture, and EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , and offered almost exclusively to Fortune 500 companies because of their large size and commensurate budgets," Dolan continued. "In contrast, the service-provider landscape for middle-market companies is highly fragmented with no clear leader. With this merger and other strategic acquisitions being planned, BPOMS expects to become the leader in the middle market by offering the same comprehensive back-office services to mid-sized companies at lower cost compared to the larger and higher-priced Tier-1 providers. In addition, because of our lower-cost structure, we intend to offer selective outsourcing services to Fortune 500 companies for those functions which are not being cost-effectively met by their primary Tier-1 providers. "Financially, this merger provides BPOMS with access to public capital markets and enhanced opportunities to achieve substantial revenue growth and correspondingly higher shareholder value," Dolan added. "Demand for business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in services, especially those related to noncore competencies such as human resources, IT, and related functions, is rising and presents significant growth opportunities. "From an investment standpoint, high customer contract renewal rates and therefore recurring customer revenue have proven to be important contributors to creating higher market valuations for BPO service providers," Dolan stated. "In addition, BPOMS will pursue key public-company advantages for our stockholders, including share liquidity and higher, peer-comparable market valuation." The proposed merger has been approved by BPOMS and is subject to approval by netGuru shareholders. For additional information and terms of the proposed merger, refer to netGuru's announcement on August 30, 2006, at http://www.netguru.com/press/PR-083006.asp. About netGuru, Inc. netGuru is a technology and services company offering document and project collaboration software/solutions and technical services and support. For more information, please visit www.netguru.com. About BPO Management Services, Inc. BPO Management Services (BPOMS) is a BPO service provider who offers a diversified range of solutions and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to fulfill the back-office needs of middle-market enterprises on an outsourced basis. BPOMS supports middle-market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce. For more information, please visit www.bpoms.com. |
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