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Direct Response Marketing

Field Reports

1 Nov, 2006 By: Thomas Haire, Courtney Beth Pugatch Response


 

West Corp. Buys InPulse for $44.5M

 

By Thomas Haire (thaire@questex.com)

OMAHA, Neb. and PHOENIX — West Corp. acquired InPulse Response Group Inc. on Oct. 2 for approximately $44.5 million. InPulse, a leading provider of outsourced sales to direct response (DR) marketers, will operate as part of West's Communications Services segment.

 Steve Pittendrigh
Steve Pittendrigh

The acquisition was funded with a combination of cash on-hand and West's existing bank credit facility. West expects the transaction to have no impact on 2006 earnings per share and to be slightly accretive to net income in 2007.

"We are now officially part of West, but we will maintain our brand sales and soft offer approach under the InPulse brand," said Steve Pittendrigh, founder/CEO of InPulse in an exclusive interview with Response Magazine. "This partnership, though, will catapult us operationally. Our definition of success remains the same: are our clients making more money by using our services? With this deal, we know the answer will be yes."

Rod Kempkes
Rod Kempkes

The InPulse brand and management team will remain intact, but will use West's varied technology platforms, allowing for growth the two companies couldn't expect on their own.

"We are extremely excited about the synergy of complementary services and the great integrity of these two companies coming together," said Rod Kempkes, executive vice president of West Corp., in an exclusive interview with Response Magazine.

Pittendrigh adds that the timing for such a move was "perfect."

"The industry has been changing, and one of the biggest changes was the expansion of the importance of data," he contends. "While our data was good, to get where we wanted it to be would have been an incredible investment. When we asked ourselves, 'Should we do this alone or should we look for a partner?' the answer was clear. In West, we've found the best partner we could have hoped for."

At the same time,Kempkes says it would have also taken great investments in both time and money for West to replicate the specialties offered by InPulse. "InPulse is all about sales, stewardship and performance," Kempkes adds. "Why should we try to replicate their platform when we respect their brand and can align with it?"

Both leaders say the new partnership also offers services that "extend beyond those of other telemarketers," according to Kempkes. "With this partnership, we can now offer every tech and sales platform imaginable to our customers," he adds.

Pittendrigh agrees, citing West and InPulse's first combined client conference call in mid-October. "The array of solutions we can now offer truly shocked one of our long-term clients," Pittendrigh contends.

 

Google Buys YouTube As 'Net Video Company Makes Other Deals

 

By Courtney Beth Pugatch (cpugatch@questex.com)

NEW YORK — YouTube Inc. continues to make news as Google has agreed to purchase YouTube.com while CBS and two major music labels joined in a partnership with the video-sharing Web site. The new arrangements allow YouTube to continue to promote video sharing with no copyright infringements.

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