HCL buys Liberata unit
SOURCE: DNA
DATE: July 16th, 2008
ARTICLE
HCL Technologies appears to have struck gold with a deal to buy the financial services division of UK-based BPO major Liberata (LFS) for $2 million.LFS has annual revenues of $60 million and an order book of $540 million spread over five years. It provides policy management, actuarial and analytics services for six clients in the life insurance space in the UK.
Ranjit Narasimhan, president and CEO of HCL BPO said, HCL Technologies will get four delivery centres in the UK at Romford, Preston, Croydon, and Welwyn Garden City as part of the acquisition. The 800-odd LFS employees would be absorbed into the company.
The all-cash deal would be funded through internal accruals.
Insurance-specific BPO is a $3.4 billion market in the UK and growing at 12% annually.
HCL Technologies plans to invest $24 million in the newly acquired division over three years to enhance capabilities in this space.
“The sale will enable Liberata to focus on its core BPO business in the public sector,” an HCL statement quoted Liberata CEO Robert Gogel as saying.
This is HCL’s second buyout deal in 2008. In February, it had acquired US-based Capital Stream, a provider of IT solutions for lending and straight-through processing for commercial banks and finance companies for $40 million. That acquisition gave HCL about 35 customers.
For the quarter ended March, HCL, along with its subsidiaries had revenue of $1.8 billion (Rs 7,083 crore) and employed 49,802 professionals.
Related Posts
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Leave a Reply