Votorantim New Business announces merger of TIVIT and Telefutura
Press Release, 04/24/2007

Votorantim New Business (VNN) announced, today, the merger of two success stories: TIVIT, specializing in outsourcing Information Technology services and business processes, that had VNN as its only shareholder, with 100% of its capital, and Telefutura, a Contact Center and Relationship Solutions company, that had VNN, Pátria – Banco de Negócios, and its founders as shareholders. TIVIT and Telefutura come together to create the first Brazilian company capable of offering integrated IT, Contact Center, and BPO (Business Process Solutions) services.

The TIVIT brand will be maintained, because it has a broader scope that is in line with that of the new company. With the exchange of shares that took place between the partners, the share composition of the combined company now becomes: VNN with 72.1%, Pátria with 12.4%, and the founders of Telefutura with 15.5%.

“The merger of TIVIT and Telefutura creates a company with an expanded offering of products and services and complementary capabilities that allow us to provide integrated and verticalized solutions for outsourcing business processes,” noted Paulo Henrique de Oliveira Santos, President of VNN. He points out that the company intends to internationalize its operations, in order to compete with the world’s main suppliers, such as Indian companies. “Consolidating the operations of the two companies creates a new business model for a Brazilian company, following the worldwide trend to join forces around unified structures and with the solidity needed to jockey for space in the competitive world outsourcing market.”

The creation of this new company will bring to clients a broad portfolio of complete and integrated products and services, less complexity in managing multiple partners, and customized solutions for their entire value chain. For its employees, TIVIT will offer new career paths and opportunities for professional development. “Besides hiring another 3,000 people by the end of this year, when we will total 18,000 employees, we will form partnerships with educational institutions and universities, thus investing in the formation of our professionals, who will be enabled to work in a sector where there is a lack of specialized personnel, which is that of information technology,” explains Luiz Mattar, President of TIVIT. In this way, TIVIT will make it possible for employees to evolve from more basic functions, such as a Contact Center operator, to more complex activities, like programmer and systems developer.

TIVIT is born with forecasted billings of R$ 700 million, in 2007. The product and service offering is divided into two business lines: Information Technology and BPO. The first, under the leadership of Edson Ferreira Leite, takes in IT infrastructure and systems integration. The second, which includes the Contact Center and business process solutions, is led by Eraldo de Paola. The target group of the new company is medium and large companies in the finance, manufacturing and services areas.

GROWTH AND INTERNATIONALIZATION

TIVIT intends to grow in double-digit increments, along three overall lines of action: organic growth, acquisitions, and internationalization. The company’s organic growth is based on increasing the services provided to its current base of over 300 clients and on winning new ones, by offering wider-ranging products and services. TIVIT’s plans also provide for acquisitions, in order to gain a market share and obtain economies of scale at the Contact Center, as well as acquire complementary competence in systems integration and BPO on the national and international (offshore) markets in which the company will be involved.

“TIVIT is born with aggressive growth prospects for the coming years. We have a bold plan, which is based on the success story of both companies, a well-structured corporate governance, and a solid capital structure,” notes Mattar. “Another important distinctive difference is the local decision center that ensures flexibility and agility in decision making,” remembers Oliveira Santos. As VNN’s President sees it, TIVIT will break the paradigm and create a new business model for Brazilian companies, placing it on an equal standing with the big worldwide players in the sector.

Pátria found TIVIT to be an adequate target for the investments planned by the companies in this sector. “The bank had projects for directing funds to a Brazilian business processes outsourcing company, with an aggressive growth strategy, and with plans for competing on the international market. The merger of TIVIT with Telefutura, which was performed by the shareholders, addressed this strategy,” explains Alexandre Saigh, a Pátria partner. “With the merger, we created a large Brazilian company, which is financially solid and able to become a benchmark for the market, whether national or international,” concludes Oliveira Santos, who will chair TIVIT’s Board of Administration.

More Information:

CDN Comunicação Corporativa
Suzeli Damaceno: (11) 3643-2746 / suzeli@cdn.com.br
Rosa Webster: (11) 3643-2802 / rosa.webster@cdn.com.br

About VNN and TIVIT
Item Comunicação
Christiane Mariotto: (11) 3841-2929 / christiane.mariotto@item.com.br

About Pátria Banco de Negócios
RP1 Comunicação
Rosely Santiago: (11) 5501-4655 / roselysantiago@rp1.com.br

About Telefutura
Filomena Sayão Comunicações
Filomena Sayão: (11) 3289-6429 / filosayao@filosayao.com.br