Attached files
Exhibit 99.1
eLoyalty Announces Completion of ICS Divestiture, Launches Mattersight Corporation
CHICAGO, IL, May 31, 2011 eLoyalty Corporation (Nasdaq: ELOY, MATR) today announced that it completed the divestiture of its Integrated Contact Solutions business unit to a subsidiary of TeleTech Holdings, Inc. The proceeds from the sale of the business unit, net of adjustments and prior to transaction costs, were approximately $35.6 million (subject to post-closing adjustments).
Effective today, the company will operate as Mattersight Corporation. The companys shares will begin trading on the Nasdaq Global Market under the ticker symbol MATR at the open of markets on Wednesday, June 1, 2011.
Mattersight is a leader in enterprise analytics as a service; the companys Behavioral Analytics service captures, analyzes, and creates insight from unstructured conversations, emails, and employee desktop activity. We believe that Mattersight has the foundational building blocks to become a highly successful independent company, including:
| Large and Untapped Market: We estimate the market potential for our analytics in the United States at $5+ billion per year. The market is very new and we believe it is less than 5% penetrated. |
| Enterprise Analytics Footprint: The company applies millions of proprietary algorithms to previously unstructured and unanalyzed customer and employee interactions. The companys analytics are used in service, sales, and collections calls centers. The company has also deployed analytics applications for Fraud, Customer Retention, and the Back Office. |
| Analytics as a Service in the Cloud: Mattersights analytics are delivered in the cloud and virtually all of the companys revenues are recurring. |
| Significant Returns for Our Customers: The companys unique analytics and delivery model generates 2x to 10x returns for the companys customers. |
| Impressive Customer List: The company has built an impressive customer list including, 3 of the top 5 HMOs; 3 of the top 4 Property & Casualty companies; one of the three largest retail banks; and 1 of the 2 largest Prescription Benefit Management companies. |
| Large and Sticky Customer Relationships: The companys average revenue per customer is in excess of $1 million per year. The companys typical contract is between $3 million and $20 million and runs for an initial duration of 3 to 5 years, with a number of the companys earliest customers having signed extensions of an additional 3 to 5 years. |
| Significant Revenue Visibility: The company has a large Contract Backlog and its revenue retention rate is 95%. |
About Mattersight
Mattersight is a leader in enterprise analytics. Mattersights Behavioral Analytics service captures, analyzes, and creates insight from unstructured conversations, emails, employee desktop activity, and customer data. Mattersights impressive list of customers use these analytics to improve call center performance, increase customer satisfaction and customer retention, reduce fraud, and streamline back office operations. For additional information on how Mattersight enables its customers to See What Matters, visit www.Mattersight.com.
Safe Harbor for Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements, which may be identified by use of words such as plan, may, might, believe, expect, intend, could, would, should, and other words and terms of similar meaning, involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In addition to other factors and matters contained or incorporated in this document, important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements include, among other things, the risks detailed from time to time in Mattersights SEC filings. You can locate these filings on the Investor Relations page of Mattersights website, www.mattersight.com. Statements included or incorporated by reference into this press release are based upon information known to Mattersight as of the date of this press release, and the company assumes no obligation to publicly revise or update any forward-looking statement for any reason.
Contact
Bill Noon
Vice President, Chief Financial Officer
847.582.7019
ir@mattersight.com