Blog

Essar to Sell Aegis USA to teleperformance for 610 Million

0
0

0
0
0

According to a statement by the Essar Group, AGC Holding Ltd, a wholly owned portfolio company of Essar Global Fund Ltd, has signed the deal to sell Aegis USA’s part of the business. Mumbai: Euronext-listed outsourcing technology firm Teleperformance of Paris on Wednesday said it has entered a definitive agreement to acquire Essar Group-controlled Aegis USA Inc., a outsourcing and technology company with operations in the US, the Philippines and Costa Rica, for $610 million. Aegis USA, is a unit of Mumbai-based Aegis Ltd, promoted by the Essar Group, was in talks with Teleperformance for sometime now. According to a statement by the Essar Group, AGC Holding Ltd, a wholly owned portfolio company of Essar Global Fund Ltd, has signed the deal to sell Aegis USA’s part of the business. Aegis will continue to retain the remainder of the BPO business globally across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and the UK. Uday Gujadhur, board Member, Essar Capital Ltd, and a fund manager for Essar Global Fund, said this transaction fits the strategic objectives of Essar Fund and will also yield many synergies and benefits for Aegis’s employees and customers. “We look forward to continue to grow the Aegis portfolio in our other markets including India, Malaysia, Australia, the Middle East, Europe and Latin America,” Gujadhur said. After the transaction, Aegis would have operations in 37 locations across nine countries with more than 37,000 employees. The business to be acquired represents total annual revenue of $400 million and more than 19,000 full-time employees across 16 centres in the three countries, serving multiple premium clients in various key growing industries in the US market, Teleperformance said in a statement on its website. “The consideration for the transaction will be $610 million at closing. Following the transaction, which is not subject to a financing condition, the group’s consolidated debt-to-Ebitda (earnings before interest, taxes, depreciation, and amortization) ratio will remain below 1. The transaction is expected to close during the third quarter of 2014, subject to receipt of certain regulatory approvals and other customary closing conditions,” Teleperformance said. Daniel Julien and Paulo César Salles Vasques, executive chairman and chief executive officer of Teleperformance, respectively, were quoted in the statement as saying that with this transaction, “Teleperformance will boost its US market share, adding $400 million to our annual revenue, taking the worldwide revenue to a total of $4 billion on a pro-forma basis.” “We will significantly strengthen our presence in the healthcare, financial services, travel and hospitality verticals in the US, thereby continuing to accelerate the diversification of our business portfolio. The deal will create immediate value for Teleperformance shareholders as it will be accretive to earnings per share by above 10% starting from 2015, with the consolidated Ebitda margin exceeding 10%,” the executives were quoted as saying. In 2013, Teleperformance reported consolidated revenue of €2,433 million ($3,236 million). Before this transaction, the group operates 110,000 computerized workstations, with close to 149,000 employees across around 230 contact centres in 62 countries and serves more than 150 markets. It manages programmes in 63 languages and dialects on behalf of major international companies operating in a wide variety of industries. Teleperformance’s India operations, which began in 2001, are spread across centres in Gurgaon, Jaipur and Indore with a headcount of 4,000 as of 2013. Aegis BPO reported revenues of $800 million in 2013 with a global headcount of 55,000 employees across 55 centres in 13 countries. The Indian BPO industry is witnessing consolidation at this moment. In a filing to BSE on 1 April, Essar Telecom, the telecom arm of the Essar Group, increased its stake in AGC Networks, a part of Aegis BPO, to 75% from its earlier stake of 29.3%. In January, Aditya Birla Nuvo Ltd agreed to sell its Canada-based business and technology outsourcing firm Aditya Birla Minacs Worldwide Ltd. The transaction marks the Aditya Birla Group’s exit from the information technology business.

Source: http://benprise.ning.com/forum/topics/essar-to-sell-aegis-usa-to-teleperformance-for-610-million
July 11, 2014
Comments

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

0 + 0 =