Newgen Completes Acquisition of Computer Care
1 December 1999
Newgen Completes Acquisition of Computer Care; Acquisition Adds 4,000 New Dealerships, Bringing Total Dealerships to 6,500
SAN DIEGO--Nov. 30, 1999--Newgen Results Corporation , the leading provider of customer relationship management products and services to the service sector of the U.S. retail automotive industry, today completed its acquisition of Computer Care, a division of the Dealer Services Group of Automatic Data Processing, Inc. ("ADP"). The terms of the transaction are the same as previously announced on October 25, 1999.Gerald L. Benowitz, CEO of Newgen, commented, "This acquisition provides Newgen with a tremendous opportunity to upgrade these dealers to our unique closed loop reminder system, the Results program. Over time, as we encourage dealerships to convert to the Results program, we expect their spending habits to approach those of our existing clientele, which is approximately $20,000 per year compared to approximately $5,000 spent with Computer Care's program. We expect our ability to convert dealerships will be enhanced by our ongoing strategic alliance with ADP's Dealer Services Group to deliver e-CRM services to all of ADP's dealership customers."
Benowitz added, "In addition to new dealerships, we are also gaining a strong field sales force and specialists in dealing with the automotive superstores and automotive manufacturers. One of our goals is to enter into agreements with automotive manufacturers, similar to our agreement with Ford, and with these specialists we will be able to leverage their existing relationships. Over the next few months we will be consolidating operations and fully integrating our respective staff and databases. During fiscal 2000, we expect to achieve cost efficiencies as the operations are fully integrated and we transition dealerships to the Results program."
ADP Dealer Services President Mike Martone commented, "We are delighted to be working closely with Newgen and believe our customers will benefit from Newgen's ability to provide one of the highest levels of customer relationship management in the industry."
About ADP
ADP Dealer Services is a leading provider of integrated computing solutions to manufacturers and more than 18,000 auto and truck dealers throughout the United States, Canada, Europe, Asia, and Latin America. ADP is one of the largest independent computing services firms in the world with over $5 billion in revenues and 450,000 clients. For more information about ADP, or to contact a local ADP sales office, reach the company at 800/225-5237, Extension 5091 or visit the company's Web site at www.adp.com.
About Newgen Results Corporation
Newgen is a database management and technology leader in the service arena of the automotive industry. The company provides owner loyalty and fixed operation solutions to automotive dealers and manufacturers.
Newgen's expertise in database marketing and customer retention services combined with customer service and in-depth knowledge of service department operations provides a platform to deliver highly targeted and customized solutions to the automotive community. Since the beginning of 1996, Newgen has grown its customer base from 177 dealerships to over 2,400 dealerships. The company currently solicits over five million vehicle owners.
Newgen's products and services are designed to attract more vehicle owners, more often to automotive dealerships. This process promotes customer loyalty and increases customer satisfaction with the dealership while driving increased revenue for the dealer. Vehicle owners benefit by knowing that a well-maintained vehicle can enhance vehicle resale values and the overall driving experience. In addition, this process also provides automotive dealerships the ability to effectively differentiate themselves from their competition through improved parts and service operations. For more information, call 800/7NEWGEN or visit Newgen's web site at www.ngresults.com.
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about the benefits to Newgen of a business relationship with ADP and the Company's ability to generate additional revenues from former Computer Care customers. Such statements are only predictions and the company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to risks related to market acceptance of Newgen's products, rapidly changing product requirements, the introduction of new products by competitors of the company, the transition of Computer Care's customers to Newgen's services, and Newgen's ability to maintain a business relationship with ADP. These factors and others are more fully discussed under the heading "Risk Factors" and elsewhere in Newgen's Registration Statement on Form S-1 (No. 333-62703) and in the Company's most recently filed quarterly report on form 10Q, each filed with the Securities and Exchange Commission.