Aegis BPO, a unit of one of India’s largest conglomerates, Essar Group, will acquire Philippine-based PeopleSupport Inc. for $250 million.
Rainerio Borja, president of PeopleSupport Philippines Corp., told reporters yesterday in a press conference PeopleSupport’s operations would be merged with Aegis BPO after the acquisition.
“We continue to be very bullish on the Philippines. This merger enhances our plans and I think it can only speed up our growth,” said Borja.
The combined entity will have revenues close to $500 million this year, with Aegis contributing $320 million. The purchase will also integrate Aegis’ 25 facilities, 20,000 employees and 14,000 seats with PeopleSupport’s seven facilities (six in the Philippines, and one in Costa Rica), 8,400 workers and 7,000 seats.
The merger will be done through Aegis’ wholly-owned subsidiary, Essar Services (Mauritius). The merged entity would then be renamed Aegis People Support Inc.
Borja said PeopleSupport would still pursue domestic and international expansion plans, increasing its facility in Baguio City by 500 to 750 seats in the fourth quarter.
The company is also looking at expansion opportunities in Costa Rica and other Spanish-speaking countries.
The company plans to get as much as non-voice business as it could to optimize the seat utilization at daytime, which currently stands at only 30 percent.
“To optimize seat utilization at daytime, you either go to non-voice or you go to other geographical locations, which we can do both with the merger with Aegis BPO,” said Borja.
He said while the downturn in the economy of the United States was a factor in the company’s decision to sell out to Aegis, it had enough muscle to ride out the crisis.