|
ADMINISTAFF INVESTS IN STRATEGIC ALLIANCES FOR
DEVELOPMENT OF FUTURE SERVICE OFFERINGS
HOUSTON, TX – July 11, 2000 –
Administaff, Inc., (NYSE: ASF) a leading Professional Employer Organization
(PEO), today announced it has entered into strategic alliances with
two Internet-based service companies – Virtual Growth and eProsper.
The alliances include equity investments by Administaff, joint marketing
initiatives, and the development of future service offerings.
Virtual Growth, an outsourced Internet Business
Service Provider for small and medium-sized business (SMBs), delivers
outsourced accounting services via the Internet. Under the terms
of the marketing arrangement, the companies will work to integrate
their online services so mutual clients can access two key business
functions – personnel management and bookkeeping/accounting
– in a more efficient and cost-effective manner. Administaff
will receive a commission for five years on sales referrals closed
by Virtual Growth. In addition to the marketing arrangement, Administaff
purchased from Virtual Growth a convertible note in the principal
amount of $3 million and warrants to purchase Virtual Growth stock.
"Virtual Growth will help us add key functionality
to our basic service offering," said Paul J. Sarvadi, Administaff
president and chief executive officer. "Now, in addition to
gaining administrative relief through our comprehensive personnel
management system, our clients can benefit from outsourced accounting
services that complement our high-tech/high-touch approach to doing
business."
Stephen King, founder and chief executive officer
of Virtual Growth, added, "As a leader in outsourced personnel
management services, Administaff is the ideal company to expand
the integrated service offerings that Virtual Growth will launch
in the coming year. This alliance will help small and medium-sized
businesses automate and integrate two key components of their back-office
operations while removing the burden of building and maintaining
accounting and human resource departments."
Administaff’s clients will be able to engage
Virtual Growth’s services via bizzportSM, Administaff’s
business-to-business and business-to-consumer eCommerce portal.
The companies intend to integrate the services for shared clients
through Administaff Assistant, the company’s eService platform.
Administaff has also entered into a strategic
alliance with eProsper, an Internet-based firm that will provide
emerging growth companies with integrated capitalization and stock
option management services. Under the alliance, the parties will
pursue joint marketing opportunities and the development of integrated
services. In addition, Administaff has invested $2.5 million in
eProsper Series C Convertible Preferred Stock.
"Many of the high-growth companies in our
quality client base are rounding out their employee compensation
packages with stock options," said Sarvadi. "We expect
this trend to continue, and we anticipate that our clients will
appreciate the value-added services provided by eProsper."
Peter Dickstein, eProsper’s president and
chief executive officer, added, "This alliance represents a
significant growth opportunity for eProsper. We look forward to
integrating our services with an industry leader like Administaff."
About Administaff
Administaff is a leading provider of personnel management services
for small and medium-sized businesses throughout the United States.
The company’s comprehensive Personnel Management System includes
employment administration, benefits management, government compliance,
recruiting and selection, employer liability management, training
and development, performance management and owner support. Administaff
ranks number 615 on the Fortune 1000 list and is included for the
second consecutive year on Fortune’s list of "America’s
Most Admired Companies." The company also ranks number 83 on
the Information Week 500 list of leading information technology
innovators. Administaff currently has 28 sales offices in 16 major
markets. For additional information, visit the company’s web
site at www.administaff.com.
Administaff’s eCommerce portal, bizzport,
leverages Administaff’s buying power and business relationships
to bring a broad range of value-added products and services from
best-of-class providers to the premium small business community
represented by Administaff’s client base. In addition to Virtual
Growth and eProsper, Administaff has alliances with leading companies
such as American Express, Aon Enterprise Insurance Services, AT&T,
Bank One, Dell, Forrester Research, IBM, MobShop, Inc. and works.com.
About Virtual Growth
Virtual Growth’s mission is to deliver automated and integrated
business solutions for small and medium-sized companies so they
can enhance productivity and concentrate on core competencies. Virtual
Growth’s first solution, Virtual Accountant™, combines
an ASP delivery model with outsourced accounting services to provide
a cost-effective, proactive accounting solution. The service features
Web-based enterprise-class financial software and teams of trained
accountants assigned to each client to remove the burden of building
and maintaining an in-house accounting department. Founded in 1995,
Virtual Growth is privately held and funded by Bessemer Venture
Partners, Citigroup Investments Inc., a subsidiary of Citigroup
Inc. (NYSE: C), StarVest Partners and Chelsea Capital Partners.
For more information, please visit Virtual Growth at www.virtualgrowth.com.
About eProsper
eProsper was founded in 1999 by financial and legal entrepreneurs
to capitalize on the increasing trend for emerging growth businesses
to outsource financial and administrative tasks. The Company seeks
to become the leading provider of Web-based securities management
services for emerging growth companies. In addition to Administaff,
major investors in eProsper include prominent "strategic"
angel investors and leading U.S. law firms that collectively serve
nearly 8,000 private and public new economy enterprises.
(Note: The statements contained in this press
release that are not historical facts are forward-looking statements
that involve a number of risks and uncertainties. Therefore, the
actual results of future events described in such forward-looking
statements could differ materially from those stated in such forward-looking
statements. Among the factors that could cause actual results to
differ materially are: (i) regulatory and tax developments; (ii)
changes in Administaff’s direct costs and operating expenses;
(iii) the estimated costs and effectiveness of capital projects
and investments in technology and infrastructure; (iv) Administaff’s
ability to effectively implement its eBusiness strategy; (v) the
effectiveness of Administaff’s sales and marketing efforts,
including the company’s marketing arrangements with other companies;
and (vi) changes in the competitive environments in the PEO industry.
These factors are described in further detail in Administaff’s
filings with the Securities and Exchange Commission.)
|
|
