India’s Aegis BPO buys Philippines’ PeopleSupport in $250 mln deal
SOURCE: Thompson Financial News
DATE: August 4th, 2008
ARTICLE
Aegis BPO, part of the Indian business conglomerate Essar Group, said it will buy Philippines’ back-office outsourcing group PeopleSupport (nasdaq: PSPT – news - people ) Inc. for $12.50 a share in a deal worth $250 million.In a conference call, Aegis said the transaction will be funded through Essar’s existing resources.
On completion, PeopleSupport will be delisted and the new company will be called Aegis PeopleSupport, Aparup Sengupta, global chief executive and managing director of Aegis BPO, said.
Aegis PeopleSupport will become a wholly owned unit of Aegis BPO and the deal is expected to complete in the third or fourth quarter of 2009.
Sengupta said the company’s staff numbers will rise to 29,000 from 20,000 at present.
Sengupta told Thomson Financial News said the company generated $200 million sales in the year to March and expects this to rise to about $500 million by end of fiscal 2010, including PeopleSupport’s contribution.
The deal will add about $270 million revenues from U.S. clients. At present, Aegis BPO generates about $120 million in the United States.
