BackEssar’s Aegis buys US-based BPO firm for $250 million
Essar’s Aegis buys US-based BPO firm for $250 million
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Mumbai: Business process outsourcing services provider Aegis Communications Inc., part of the Mumbai-based Essar business house, has agreed to pay $250 million (Rs1,060 crore) in cash to acquire 100% stake in US-based PeopleSupport Inc.
Aegis will pay PeopleSupport stockholders $12.25 per share through Essar Services (Mauritius), a premium of approximately 29% over PeopleSupport’s closing share price on 1 August.
PeopleSupport has service delivery centres in the Philippines and Costa Rica, offering outsourcing services to clients from banking, travel and other businesses. The transaction, subject to regulatory approvals, is expected to close in the third or fourth quarter this year and the target renamed Aegis PeopleSupport.
“PeopleSupport is a strategic fit to Aegis as it will enable us to broaden our portfolio into travel and transportation apart from acquiring Spanish speaking capability and diversifying (delivery locations)," Aparup Sengupta, global chief executive and managing director of Aegis, told reporters.
UBS AG and Edelweiss Capital Ltd were Aegis’ financial advisors.
This acquisition will help boost Aegis’ revenues of $500 million and add 8,500 PeopleSupport employees to its more than 20,000 global workers. Monday’s deal is the 11th acquisition by Aegis in three- and-a-half years, Senguptasaid, adding that the current PeopleSupport management would be retained.
PeopleSupport had $36.4 million revenues for the second quarter ended 30 June, reporting a net loss of $1.3 million. In the June quarter of 2007, net income stood at $3.9 million.
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