KPN, Perot Systems Form New Company
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[London, ENGLAND] KPN Royal Dutch Telecom and Perot Systems Corporation announced Monday the formation of a new company which is intended to generate US$300 million in revenues from Internet, Wireless Application Protocol (WAP) and call center applications.
Strategically, the new venture will put together front-end applications and customer service technology not only for KPN and its subsidiaries but also for other major European organizations.
Although the partners have not yet announced the name of the new venture, they have revealed that it will be headquartered in Groningen in the Netherlands, will be staffed by more than 300 people and have two branch offices in other parts of the country.
Paul Smits, chairman of KPN, said the alliance with Perot Systems would help achieve the goal of providing the best services to KPN's customer base. He referred to Perot Systems' mix of experience, technology and flexibility which he said were needed to make this kind of relationship succeed.
The two companies have issued ambitious projections for the new venture, saying that the first year revenue is expected to be approximately US $50 million. However, with KPN committed to purchasing at least US $90 million of services over the next three years, the figures should be achievable. Profits will be divided equally between the two parent companies.
KPN has many interests outside the Netherlands that can generate income opportunities in West and Central Europe for the latest venture. In mobile communications, KPN Mobile recently purchased the German operator E-Plus and now has around 9 million European customers.
Texas-based Perot Systems operates worldwide and had 1999 revenues of US $1.1 billion.