Corporate News

Teleperformance buys Aegis businesses

Posted on July 11, 2014

BUSINESS process outsourcing company Teleperformance is set to expand its operations in the Philippines, following the announcement of its acquisition of Aegis USA, Inc.’s operations here, as well as those in the United States and Costa Rica, for $610 million.

In a statement released on Thursday, Teleperformance announced that it has entered into a definitive agreement to acquire Aegis USA, with the deal expected to close by the third quarter.

Under the agreement, Aegis USA will retain its BPO operations across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and the United Kingdom, the statement read.

The businesses to be acquired represent total annual revenue of $400 million and more than 19,000 full-time employees across 16 centers in the Philippines, the US and Costa Rica, serving clients in various key growing industries, including health care, financial services, travel and hospitality.

“We look forward to partnering with our new clients upon the closing of the transaction. We want to ensure them that the entire consolidated team is committed to serving them with dedication, professionalism and passion. We also want to thank them in advance for giving us the opportunity to become their loyal service providers,” Daniel Julien and Paulo Cesar Salles Vasques, respectively executive chairman and chief executive officer of Teleperformance, said in the statement.

With this deal, Teleperformace said it will be able to boost its US market share, adding $400 million to its annual revenue, for a total of $4 billion in worldwide revenue on a pro-forma basis.

“The deal will create immediate value for Teleperformance shareholders as it will be accretive to earnings per share by above 10% starting from 2015, with consolidated EBITA margin exceeding 10%,” the Teleperformance executives said.

For his part, Uday Gujadhur, fund manager of Aegis USA’s parent company Essar Global Fund Ltd., said in a separate statement: “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.”

He added that Essar Global is looking to grow the Aegis portfolio in our other markets including India, Malaysia, Australia, Middle East, Europe and Latin America.

Teleperformance and Aegis USA executives, however, were not immediately available to comment on the transaction’s consequences for the local industry.

Teleperformance is one of the biggest BPO companies operating in the Philippines, with more than 12,500 workstations from 11 business sites located across Metro Manila, Antipolo City, Bacolod City, Cebu and Davao. -- Chrisee Jalyssa V. Dela Paz