Vertex Signs Agreement for Purchase of Alliance Data's Utility Services Business
Portfolio Company News - July 14, 2008
Vertex, a global outsourcing firm, announced today an agreement with Alliance Data Systems Corporation to acquire the company's Utility Services business. Alliance Data's Utility Services provides billing systems, professional services and process outsourcing to utilities in the U.S. and Canada. Alliance Data previously announced its intention to sell its Utility Services business to focus on its long-term strategy of delivering loyalty and marketing solutions. The transaction is expected to close in the third quarter.
The addition of Alliance Data's Utility Services to Vertex's existing utilities business will create an industry leading service provider with 2,500 utilities professionals across 18 centers of excellence in the U.S. and Canada. The combination of Vertex's strengths in transformational process outsourcing and high-quality customer experience management with Alliance Data's Utility Services' capabilities in application maintenance, hosting, systems integration, and customer information systems will position the new organization to best serve the evolving needs of the Utilities sector. The new Vertex Utilities organization will serve more than 70 electric, gas, water, and retail energy providers in the U.S. and Canada.
Richard Graham, Vertex's CEO, commented, "This is an exciting time to serve the utilities industry. Utilities are looking for ways to engage with their customers to work together on win-win opportunities to reduce costs and improve efficiency. Demand response and other emerging priorities are changing the emphasis of the relationships between the utility and their customers from supplier/rate payer to one of collaboration. The purchase of Alliance Data's Utility Services business provides the intellectual capital, products, and services needed to be a nimble and responsive partner to the utility industry in these changing times."
John Hall, Managing Director of Utilities for Vertex, added, "This new combination of capabilities, assets and utilities-focused practitioners provides us an exciting opportunity to more effectively support utilities in providing the right service to their customers."
Vertex was founded in 1996 as a subsidiary of British utilities provider, United Utilities Plc. The company has grown to offer transformational outsourcing and information technology services capabilities to help clients build profitable, long-term relationships with their customers. Vertex currently employs 9,000 people in the UK, US, Canada and India serving clients in utilities, financial services, retail, telecommunications, travel and the public sector.