Western Buys Into Direct Marketing Firm
Western Resources of Topeka, KS, acquired a 40% interest in
national direct marketer Paradigm Direct for $31.2 million. "This
strategic transaction provides an excellent opportunity to bridge
our customer bases. Over the past few years we set a course to
dramatically expand Western Resources' national footprint. With
Paradigm's marketing expertise, we are positioned to increase the
services we provide these customers and do so efficiently," said
David C. Wittig, Western Resources CEO.
The investment is in the form of a cash pay convertible
preferred instrument. Western Resources will also have
participation in pre-tax earnings of Paradigm.
Based in Ft. Lee, NJ, Paradigm Direct assists clients with
leading brands in diversified industries such as
telecommunications, financial services and insurance, to acquire
new customers through direct mail, telemarketing, direct response
television, and the Internet. Paradigm has sales in excess of $70
By 1999 Western Resources expects to have access to more than 6
million customers nationwide through its electric utility
operations; its 85% ownership of home security service Protection
One; and investment in ONEOK, the country's eighth largest gas
Paradigm's initial focus for Western Resources will be to roll
out a new marketing plan for Protection One with the goal to create
new customers at a significantly lower cost.
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