Onex Corporation

Onex Corporation

October 13, 2006 08:00 ET

Onex Subsidiary ClientLogic to Acquire SITEL Corporation

Transaction creates global leader in outsourced customer support services

TORONTO, ONTARIO and NEW YORK, NEW YORK--(CCNMatthews - Oct. 13, 2006) -

All amounts in U.S. dollars unless otherwise stated

Onex Corporation (TSX:OCX) announced today that its subsidiary ClientLogic Corporation has agreed to acquire SITEL Corporation (NYSE:SWW) for approximately $450 million. The purchase price includes $4.05 cash per SITEL share, for an aggregate equity purchase price of approximately $310 million, and approximately $140 million of SITEL debt to be refinanced at closing. The acquisition will create one of the world's largest providers of outsourced customer support services with annual revenues in excess of $1.7 billion.

"The combination of ClientLogic and SITEL will yield the most diversified and well positioned customer care organization in the industry. The synergies resulting from the merger are also genuinely exciting," said Seth Mersky, Managing Director of Onex.

ClientLogic was formed by Onex in 1998 and has become a leading provider of outsourced customer care, serving clients in a broad range of industries. SITEL is a global provider of outsourced customer support services, handling more than two million customer interactions daily. The combined company will operate from more than 145 centres in 28 countries and will offer the industry's largest array of customer care services.

The transaction will require the approval of the holders of a majority of SITEL's outstanding common stock. Jana Partners LLC (the Company's largest shareholder), Jim Lynch (SITEL's Chairman and CEO), and Private Equity Investors IV, L.P. (an investment fund controlled by Rohit Desai, an independent SITEL director) collectively hold approximately 31% of the SITEL common stock and have agreed to vote in favour of the transaction at a meeting expected to be held in early 2007. The transaction agreement contains customary non-solicitation covenants in favour of ClientLogic and provides for payment by SITEL of a termination fee equal to 3.5% of the purchase price and reimbursement of ClientLogic's expenses up to $1.5 million if the transaction does not close for specified reasons.

Onex, which has invested approximately $220 million in ClientLogic, owns approximately 68% of the company and controls approximately 89% of its voting stock.

Onex is a diversified company with annual consolidated revenues of approximately Cdn$19 billion and consolidated assets of approximately Cdn$15 billion. Onex is one of Canada's largest companies with global operations in service, manufacturing and technology industries. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX.

For more information on Onex, visit its website at

Onex' security filings can be accessed at

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events, or otherwise.

Contact Information

  • Onex
    David Hirsch
    (416) 362-7711
    David Garner
    (615) 301-7100