Mergers and Acquisitions in BPO World – 2007

 

Acquiree Acquirer / VC Value Date Reason For Acquisition
BPM Inc. Firstsource Solutions $30m January 2007 Acquisition includes BPM’s two wholly owned subsidiaries – MedPlans 2000 and MedPlans Partners.
Vantedge Essar Gobal Rs 100 Crore January 2007 Acquisition is expected to contribute over USD 25 million in revenues to the BPO business of Essar
Lason HOV Services $148m February 2007 Acquisition will help HOV make an entry in new business verticals like transaction processing, healthcare and media
Sitel India Sitel Corporation $22.2m March 2007 Tata Consultancy Services is exiting its joint venture BPO, Sitel India, by selling its 40% stake for $17.73 million to Sitel Corporation. Tata International is exiting by selling 10% stake for $4.47m
Marketics WNS $65m in cash March 2007 WNS to enhance knowledge services business, which provides market research, business & financial research and analytics services.
Four Lakes Colorgraphics Laserwords $11m August 2007 The two decade old Four Lakes is a full service pre-media company with two facilities in Wisconsin and New York City. It is believed that Four Lakes project management, design and editorial development skills will combine will with Laserwords technical strength to provide on-shore, off-shore and hybrid delivery models. Laserwords will have over 1000 employees post acquisition.
HCCA Business Services Pvt Ltd 3i Infotech Ltd 3i acquired 51% of HCCA. Amount Not Disclosed August 2007 HCCA has been acquired for its delivery capabilities in HR operations, including large scale payroll processing for clients in the BFSI sector
Infocrossing Wipro $600m / 60 times Infocrossing’s earnings for the last 12 months August 2007 The deal will give Wipro five data centers in the U.S. and approximately 900 employees, as well as access to Infocrossing’s U.S. customers. After the acquisition, Wipro’s IT infrastructure management practice will be 1.5 to 2 times larger than its nearest peers, Tata Consultancy and HCL Tech. While this will enable the company to compete more effectively in larger IT management deals.
Telecom Service Centres Hero Group £40 million September 2007 The new entity will be christened TSC Hero and will offer customers a multi-site solution, increasing market potential and growth prospects in the core markets of Europe, Asia and the US.
Usha Martin Converso Contact Centres The Jhawar family, main share holders of the Usha Martin Group acquired 76% of Converso for an undisclosed amoun September 2007 Jhawars are investing in both new and existing international locations and plan to build facilities for a total of 2,000 contact centre seats globally (both on-shore and off-shore) that will meet the demands from major blue chip organisations and give them the choice of leveraging domestic and overseas BPO capabilities.
Florida based GSR Physician Billing Inc and GSR Systems Inc and Oregon-based medical transcription services provider DenMed Inc Accentia Technologies Rs 80 crore October 2007 While the GSR group companies have revenues of $3 million each, DenMed had revenues of $1.5 million. The company expects to add nearly $10 million to its topline by way of these acquisitions.
marketRx Cognizant $135m in cash October 2007 This acquisition expands Cognizant’s capabilities in the analytics segment and broadens our service offerings for the life sciences industry while providing strong synergies with our existing business intelligence/data warehousing and CRM (customer relationship management) services.
Citi BPO Genpact $630m for 90% stake October 2007 The Firstsource bid was around $100 million more than that of Genpact and although Citi was keen on doing the deal with Genpact, it was caught in a bind over the bids.
Dalglen Hero Group #40 million (Rs 320 crore) December 2007 Dalglen has a large presence in Scotland. It is one of the largest call centres in Europe and in the UK. Post acquisition, the combined group will have clients spread across sectors like telecom, financial services, IT, retail, utilities and consumer durables. The deal covers several wholly-owned subsidiaries of Dalglen including Telecom Service Centres (TSC), TSC Credit Management, Sigdev and 9 dormant subsidiaries of TSC. Dalglen group had annual revenues of #55 million in 2007 and is growing at a 15% clip annually. It has nine sites across the UK and an employee base of 3,000.
Source: Media Reports

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