American Fork-based Sento Corp. said Monday that it has signed an agreement to acquire the operating assets of Ohio-based Xtrasource Inc.
Financial terms of the transaction were not disclosed.
The acquisition includes the assumption of some liabilities of Xtrasource as well as the acquisition of all of the stock in its European operations. The purchase has been approved by the boards of directors of both companies.
The management team and employees of Xtrasource are expected to continue employment at the company after the deal closes.
Sento said in a release that it planned to make capital investments of roughly $1.5 million over the next 18 months in facility and equipment enhancements related to the Xtrasource operations.
Sento said it would relocate Xtrasource's call center in Enschede, The Netherlands. Xtrasource also has call centers in Raleigh, N.C., and Metz, France. Sento said it would use a large percentage of the Raleigh facility for growth of the existing Sento business.
Patrick O'Neal, chief executive of Sento, said in a prepared statement that the deal would give Sento a "much-needed direct presence" in Europe, the Middle East and Africa.
"Before this acquisition, we were on track to achieve fiscal 2005 revenues of $30 million and operating profitability in the second half of the year," O'Neal said. "The addition of Xtrasource will enable us to exceed that revenue goal and to achieve a higher level of profitability than originally anticipated."
Thomas Tyler, chief executive of Xtrasource, said the acquisition would enhance the company's market position.
Sento specializes in customer support services that allow people to choose between a "live human voice" or automated menu options.
Sento had net losses in four of the last five fiscal years, according to a filing with the U.S. Securities and Exchange Commission. Last month, the company reported a net loss attributable to shareholders of $554,889, or 15 cents per share, for its second fiscal quarter ended Sept. 30. That compares with a loss of $477,906, or 21 cents per share, for the same quarter a year ago. Revenues totaled $6.2 million, up from $4.1 million a year ago.
On Monday, shares of Sento were up 27 cents to close at $5.35 on Nasdaq. In after-hours trading, they rose another 52 cents, or almost 10 percent, to $5.87.
E-mail: danderton@desnews.com