Corporate News

Ayala subsidiary exits BPO company

Posted on September 03, 2016

AYALA Corp. has divested itself of another business process outsourcing (BPO) investment.

In a disclosure to the Philippine Stock Exchange on Friday, the country’s oldest conglomerate said wholly owned subsidiary LiveIt Investments, Ltd. has exited Integreon, Inc.

LiveIt Investments divested its 58.71% stake in Integreon, a British Virgin Islands-registered company limited by shares, through a business combination transaction with Anchorage Merger Sub Ltd.

“As a result of the business combination, LiveIt exercised its right to exchange all of its shares of stock in Integreon for consideration,” Ayala noted.

Integreon, which provides legal support, research and business services to law firms, financial institutions and corporations globally, emerged as the surviving entity from the merger.

Integreon will supersede Anchorage, a company incorporated in the British Virgin Islands and owned by IGL Services Ltd., a subsidiary of private equity funds managed by NewQuest Capital Partners.

LiveIt Investments divested from a similar business earlier in August. The company then sold its 82.5% stake in IQ BackOffice Holdings Ltd. to the management. As a result, the management of IQ BackOffice will own 100% of the BPO company that operates in the United States, India, Mauritius, and the Philippines.

IQ BackOffice engages in finance and accounting outsourcing (FAO) as well as human resource outsourcing. The transaction, however, only involved the sale of the FAO operations of IQ BackOffice.

Ayala is retaining other holdings in the BPO sector through LiveIt Investments, namely HRMall, Inc. and Affinity Express, Inc. (Affinity X).

“HRMall provides strategic value for the Ayala group’s [human resource] requirements, AffinityX is a global leader in advertising and marketing production services, and both continue to achieve meaningful growth and profitability,” Ayala noted.

“In the case of AffinityX, a bolt-on acquisition in the digital space would be considered to accelerate growth as well as deepen capabilities,” it added.

Shares in Ayala slid P3.50 or 0.40% to P865 apiece on Friday. -- Keith Richard D. Mariano