LOS ANGELES – April 17, 2000 – PeopleSupport, (www.peoplesupport.com) the premier provider of online customer care and customer intelligence solutions, today announced it has successfully secured mezzanine financing totaling $50 million led by Meritech Capital Partners and corporate strategic investors including Hewlett-Packard (NYSE: HWP), Siebel Systems, Inc. (Nasdaq: SEBL), Viant Corporation (Nasdaq: VIAN), Cambridge Technology Partners (Nasdaq: CATP), Rare Medium Group (Nasdaq: RRRR) iXL Enterprises (Nasdaq: IILX) and the Extraprise Group. Other investors participating in the round include; Camelot Ventures LLC, Texas Pacific Group, Octane Capital Management, CDB Web and Tech International S.A. Additionally, PeopleSupport continues to receive backing from its original financiers, including venture community leaders Accel Partners, Benchmark Capital, idealab Capital Partners and TCMT Ventures.
PeopleSupport integrates best-in-class software and personalized, people-based customer care solutions to help Internet businesses cultivate and maintain customer relationships. The company plans to leverage this new investment to continue to scale its operations, sales and marketing, and to drive its global expansion to Asia and Europe.
“We enable e-businesses to establish and maintain incomparable relationships with their customers, and this investment will allow us to continue to execute on our vision and extend our global reach,” said PeopleSupport CEO Lance Rosenzweig. “We’re particularly excited that these industry leaders are both investing in PeopleSupport and incorporating PeopleSupport’s solutions as part of their product and service offerings.”
“PeopleSupport understands that it takes both integrated technology and human interaction to build customer loyalty on the Internet,” said Meritch Capital Partners’ Managing Director Paul Madera. “They have created a sophisticated, customizable solution, that we see as an extremely important sector poised for growth as Internet commerce continues to expand.”
The financing round was strategically developed to drive corporate growth. In the coming months, PeopleSupport will work closely with its new investors to solidify its leading position within the industry and continue to provide high-quality web-driven customer care resources for e-commerce businesses.
About the Investors
About Cambridge Technology Partners
Cambridge Technology Partners provides management consulting and systems integration services to transform its clients into e-Businesses. Working in collaboration with Global 1000, high-velocity middle market companies and dot-com companies, Cambridge combines a deep understanding of New Economy issues with integrated, end-to-end services, and a proven track record of shared risk and rapid, guaranteed delivery. Cambridge generated $628.1 million in 1999, with $243.3 million from its global e-Business solutions. Cambridge has more than 4,400 employees and 55 offices worldwide. Cambridge on the Web: http://www.ctp.com.
About Camelot Ventures
Camelot Ventures is a Michigan-based private investment group comprised of entrepreneurs and executives who enjoy unparalleled success in their respective businesses, adding unique value to the companies they invest in. Since many of our principals are accomplished Presidents and CEOs including David Katzman, former President of Home Depot S.O.C., and Dan Gilbert, CEO of Quicken Loans, Camelot tends to invest in companies that realize the value of its involvement. Camelot’s goal is to assist in building upon the vision and help strengthen the position within the marketplace of the companies in which it invests. Camelot Ventures focuses on early and middle stage (pre IPO) Internet companies.
About CDB Web Tech
Based in Milan, Italy, CBD Web Tech, founded by Mr. Carlo De Benedetti and comprising professionals from General Electric, The Boston Consulting Group, Merrill Lynch and Lehman Brothers, is the publicly traded leading European Internet investment company focusing on the areas of eBusiness (B2B infrastructure, applications and services) and Communications (value-added services, networking management and enabling software technologies). CDB Web Tech’s strategy is to be a global player, with established presence and investments in the United States, Israel, South-East Asia, Australia, Brazil and India. CDB Web Tech commands a market capitalization in excess of $2.5 billion on Italy’s Nuovo Mercato.
Extraprise® is an international e-services firm that empowers its clients with innovative growth strategies across online and offline channels. With a headquarters in Boston, Extraprise operates in nine cities across North America and in Europe from an office in London. Extraprise on the Web: www.extraprise.com.
Hewlett-Packard Company – a leading global provider of computing and imaging solutions and services for business and home – is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services. HP announced that it will spin off Agilent Technologies and distribute its shares of Agilent on June 2, 2000 to HP shareowners of record as of May 2, 2000. Agilent consists of HP’s test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses. HP has 85,400 employees worldwide and had total revenue from continuing operations of $42.2 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.
About iXL Ventures
iXL Ventures is an accelerator for emerging companies that are poised for market leadership. iXL Ventures is a wholly owned subsidiary of iXL Enterprises (NASDAQ: IIXL). iXL accelerates the success of these companies through its unparalleled experience in strategic Internet service consulting for the Global 2000.
iXL is committed to the successful future of the Internet economy and the success of tomorrow’s ebusiness leaders. To that end, iXL Ventures leverages the strength of its brand, vertical market expertise, strategic relationships with Fortune 500 companies and potential investors to accelerate an emerging company’s time to market and leadership. iXL Ventures’ portfolio of 22 companies includes: AppGenesys, eFrenzy, eMD.com, FootageNow, HotOffTheWire.com, InternetSoccer.com, MediaOcean and others.
About Meritech Capital Partners
Meritech Capital Partners is a $1.1 billion venture fund sponsored by five leading venture capital firms: Accel Partners, Brentwood Venture Capital, Oak Investment Partners, Redpoint Ventures, and Worldwide Technology Partners. Meritech’s charter is to provide late-stage capital to emerging technology firms.
About Octane Capital Management
Octane Capital Management is a crossover firm founded by executives from Amerindo Investment Advisors, Goldman Sachs, Tiger Asset Management and Capital Research. Octane’s mission is to build the premier investment management firm focused on emerging, high growth technology companies. We will exercise an aggressive, but highly selective, investment strategy in the private markets and expect to complement that activity with the management of a focused portfolio of 20 – 40 core investments in the public markets.
About Siebel Systems
Siebel Systems, Inc. is the world’s leading provider of eBusiness application software. Siebel Systems provides an integrated family of eBusiness application software enabling multi-channel sales, marketing and customer service systems to be deployed over the Web, call centers, field, reseller channels, retail and dealer networks. Siebel Systems’ sales and service facilities are located in more than 28 countries. For more information, please visit Siebel’s Web site at www.Siebel.com.
About Tarrant Venture Partners
Tarrant Venture Partners, L.P. is a venture fund sponsored by the principals of Texas Pacific Group, a private equity investment firm founded by David Bonderman, James G. Coulter and William S. Price, III in 1993. Texas Pacific Group and its affiliated partnerships have aggregate committed capital of more than $7.0 billion, with more than $1.5 billion invested in technology and telecommunications. Tarrant Venture Partners has completed over 25 investments in these sectors. Most recently, executives from Texas Pacific Group teamed with Bain & Company and Kleiner Perkins Caulfield & Byers to develop eVolution Global Partners, a firm committed to building e-commerce businesses worldwide.
About Viant Corporation
Viant builds digital businesses for the world’s leading corporations. As an integrated strategy and solutions partner, Viant has pioneered powerful approaches for successfully incubating and launching e-commerce enterprises. With an emphasis on building a dynamic culture that attracts and excites the preeminent talent in the industry, Viant has grown organically with offices located in Atlanta, Boston, Chicago, Dallas, Houston, London, Los Angeles, Munich, New York and San Francisco. More information about Viant can be found at www.viant.com.
About PeopleSupport — “Powering e-Customer Care” (SM)
PeopleSupport is the leading unified Internet customer care service provider. The company’s comprehensive suite of customized services includes live text chat, personalized e-mail reply, telephone services, and interactive self-help. PeopleSupport provides e-businesses with a flexible range of support options including complete outsourcing, software and infrastructure hosting, customer care consulting, and training. PeopleSupport’s clients include Fortune 500 companies and leading e-commerce businesses such as MGM (NYSE:MGM), Time-Warner (NYSE:TWX), GE Card Services, Reel.com, BrandsForLess.com, Toyota Motor Sales U.S.A., CarParts.com, and Tavolo. PeopleSupport has received approximately $75 million of venture financing from Accel Partners, Benchmark Capital, Cambridge Technology Partners (Nasdaq: CATP), Camelot Ventures, CDB Web Tech, Extraprise, Hewlett-Packard Company (NYSE: HWP), Idealab Capital Partners, iXL Ventures, Meritech Capital Partners, Octane Capital Management, Siebel Systems, Inc. (Nasdaq: SEBL), TMCT Ventures and Viant Corporation (Nasdaq: VIAN). For more information, visit www.PeopleSupport.com.