India's Essar Global Fund Ltd is selling the US operations of Aegis, its outsourcing and technology portfolio unit, to Paris-based rival Teleperformance SA for $610 million as the European company looks to boost its presence in the United States.
The sale includes Aegis' US operations, the Philippines and Costa Rica. Aegis will retain its BPO business across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and the UK, according to a statement by Essar.
The business to be acquired represents total annual revenue of $400 million and more than 19,000 full-time employees across 16 centres in the three countries, Teleperformance said in a statement.
Buying Aegis US will significantly strengthen the Paris-based company's presence in the healthcare, financial services, travel and hospitality verticals in the United States, the company said.
The transaction is expected to close in the third quarter.
Aegis to sell US, Philippines, Costa Rica ops for $610 mn
(PTI) Essar Group firm AGC Holdings will sell its BPO business in the US, the Philippines and Costa Rica to Paris-based outsourcing firm Teleperformance for USD 610 million (about Rs 3,638 crore).
AGC Holdings, a wholly owned portfolio company of Essar Global Fund has entered into a definitive agreement with Teleperformance to sell Aegis USA Inc (AUI), which has annual revenues of USD 400 million and employees over 19,000 across 16 centres in 3 countries, the company said in a statement.
It serves clients in the US market across industries like healthcare, financial services, travel and hospitality.
The transaction is expected to close during the third quarter of 2014, subject to receipt of certain regulatory approvals and other customary closing conditions.
Aegis will continue to retain the remainder of the BPO business globally across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and UK, it added.
According to IT-BPO industry body Nasscom, Aegis is ranked as the fourth largest BPO company in India in terms of revenues after Genpact, TCS BPO and Serco.
"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," Uday Gujadhur, Board Member of Essar Capital Ltd and fund manager for Essar Global Fund Limited, said.
He added the transaction would yield many synergies and benefits for Aegis' employees and customers.
"We look forward to continue to grow the Aegis portfolio in our other markets including