AGC Holdings Limited (Aegis), a wholly owned portfolio company of Essar Global Fund Limited (Essar Fund), has entered into a definitive agreement with Teleperformance to sell Aegis USA Inc. (AUI), a major outsourcing company in the US, Philippines and Costa Rica.
The consideration for the transaction is $ 610 million. 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 UK (other than in the US, Philippines and Costa Rica).
AUI represents revenue of $ 400 million and has more than 19,000 full time employees across 16 centres in three countries, serving premium clients in the US market in various key growing industries such as healthcare, financial services, travel and hospitality.
The transaction is expected to close during the third quarter of 2014, subject to receipt of certain regulatory approvals and other customary closing conditions. The transaction is not subject to a financing condition.
Uday Gujadhur, Board Member, Essar Capital Limited, Fund manager for Essar Global Fund Limited commented “We would like to announce the sale of AUI. This transaction fits the strategic objectives of Essar Fund in the rapidly growing high quality assets and delivering value creation, in this case through a sale to a high quality strategic player in Teleperformance.”
“This transaction will also yield many synergies and benefits for Aegis’ employees and esteemed customers. We look forward to continue to grow the Aegis portfolio in our other markets including India, Malaysia, Australia, Middle East, Europe and Latin America,” added Gujadhaur.
According to industry analysts, the deal is considered as a forward-looking move by Teleperformance and will have help the company in strengthening its position in segments like healthcare, travel and tourism.
“The decision by Teleperformance to acquire the US operations of Aegis for $610 million is a forward-looking move in many respects. Most notably, Teleperformance will be in a strong position to take on higher levels of call volumes, essential as US consumer activity increases through the coming months, which will lead to enterprises seeking out contact centre partners to help deal with both demand and high levels of customer care,” said Peter Ryan, Principal Analyst – IT Services Team, Ovum Research.
“It also increases the Teleperformance presence in Costa Rica and the Philippines, countries that already have a strong commercial and cultural affinity with the US, and ones in which Teleperformance already has solid footprints,” added Ryan.