West to Buy ECI Conference Call Services for 52 Million

NJBIZ STAFF//August 9, 2005//

West to Buy ECI Conference Call Services for 52 Million

NJBIZ STAFF//August 9, 2005//

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West Corp. (Nasdaq: WSTC), an Omaha, Nebraska, provider of outsourced communication solutions, said late Wednesday it has signed a definitive agreement to acquire Wayne-based ECI Conference Call Services for $52 million in cash.Founded in 1991, ECI provides a range of conferencing services, enabling businesses to communicate via audio, faxes, e-mail, and voice mail, as well as services for Web streaming and data collaboration. West is acquiring the company from Investcorp, a global investment group.The acquisition is expected to close on December 1 and will be funded with cash and borrowings from West”s existing bank credit facility.”This acquisition is an important addition to our conferencing segment, adding scale and strengthening our position in managing operator assisted calls,” Thomas Barker, West”s CEO, said in a press release.In 2004, ECI is expected to generate annual revenue of $35 million. West expects to integrate a portion of the administrative functions of ECI with its existing conferencing segment, which will result in operating income margins for ECI of 20% to 21% next year before acquisition amortization expense. Given the cyclical nature of the conferencing sector and the approaching holiday season, the acquisition is not expected to contribute to West”s net income during December, but is expected to be accretive in 2005.At the close of tradingThursday, West shares were up $0.17 to $32.63.