PeopleSupport to Merge with Essar Services (Mauritius), a Wholly Owned Subsidiary of Aegis BPO
04 August 2008 - 10:00PM
Business Wire
Aegis BPO, a leading global business process outsourcing (BPO)
provider and part of Essar Group, one of India�s largest and
fastest growing business conglomerates with an estimated enterprise
value of over $50 billion, and PeopleSupport, Inc. (Nasdaq:PSPT), a
leading offshore BPO provider, today announced a definitive
agreement to merge through Essar Services (Mauritius), its wholly
owned subsidiary, through a cash transaction with an aggregate
equity value of approximately $250 million. This strategic
combination has been unanimously approved by the Boards of
Directors of both companies. Under the terms of the agreement,
Aegis BPO will pay PeopleSupport stockholders $12.25 per share in
cash through Essar Services (Mauritius), which represents a premium
of approximately 29% over PeopleSupport�s closing share price on
August 1, 2008, the last trading day prior to today�s announcement,
and a premium of approximately 42% over the average trading price
of the Company�s shares during the previous 30 trading days.
Following the merger, Aegis BPO will become a leader in the rapidly
growing global BPO market with operations in India, the
Philippines, the United States and Costa Rica. With approximately
4,000 employees in the U.S. and more than 25,000 employees in
several offshore locations, Aegis BPO is well positioned to provide
onshore, nearshore and offshore BPO services or a combination of
customized solutions to meet client requirements. Additionally,
Aegis BPO will offer and benefit from greater scale, deeper domain
expertise, a comprehensive and flexible solution offering,
financial strength, and a rich international talent pool. Lance
Rosenzweig, PeopleSupport CEO and Chairman, said, �PeopleSupport
has pioneered the development of offshore BPO in the Philippines
and Costa Rica, and we are excited to become a part of a global
outsourcing leader. We believe that this combination will deliver
superior value to PeopleSupport�s stockholders and customers as
well as provide our employees with an opportunity to be part of a
larger enterprise and to explore career opportunities in new
geographies. Combining PeopleSupport and Aegis BPO, with its
excellent reputation for customer service and high quality
services, creates a wealth of exciting growth opportunities, as
well as operational and client acquisition synergies. Our two
companies share the same core values of customer satisfaction and
commitment to high quality solutions. PeopleSupport�s solutions
bring compelling value to an organization and Aegis� leadership and
market strength can take PeopleSupport to the next level of
excellence.� �This is a truly outstanding combination,� said Aparup
Sengupta, Global CEO and Managing Director of Aegis BPO. �The
addition of PeopleSupport�s high performance operations in the
Philippines and Costa Rica will enable Aegis BPO to become a leader
in the global BPO market. We share many common values, namely our
dedication to customer excellence, thriving on innovation and
building a people culture. This combination extends Aegis�
capabilities across multiple geographies and domains, which is one
of the key strategies of becoming a global outsourcing leader.�
Credit Suisse is acting as financial advisor to PeopleSupport and
Pillsbury Winthrop Shaw Pittman LLP is providing legal advice to
PeopleSupport. UBS and Edelweiss Capital are acting as financial
advisor to Aegis and Shearman Sterling is providing legal support
to Aegis. The transaction is subject to several conditions
including PeopleSupport stockholder approval, regulatory approval
and certain other customary closing conditions, and is expected to
close in the third or fourth quarter of this year. The transaction
is not subject to any financing conditions. About Aegis Aegis BPO
is today one of India�s fastest growing BPO companies with annual
revenues of over USD $320 million. It is a part of the ESSAR Group
which is one of India�s largest conglomerates in terms of
enterprise value. Aegis BPO services some of the world�s largest
corporations in the Telecom, Banking, Insurance and Healthcare
verticals through its 25 delivery facilities in the U.S. and India.
Aegis BPO operates over 14,000 seats and employs over 20,000 people
globally. It has been recognized as being one of the largest
offshore BPO companies in India and among the top 2 in the Indian
domestic sector. Visit website www.aegisbpo.com. About Essar The
Essar Group is a globally diversified conglomerate with huge
business interests in Steel, Energy, Power, Communications,
Shipping & Logistics, and Construction. The Essar Group has an
estimated enterprise value of over USD $50 billion and employs over
38,000 people worldwide. With a firm foothold in India, Essar is
focused on global expansion with projects and investments in
Canada, USA, Africa, the Middle East, the Caribbean and Asia. Visit
website www.essar.com. About PeopleSupport PeopleSupport, Inc.
(Nasdaq:PSPT) is a leading offshore business process outsourcing
(BPO) provider that offers customer management, transcription and
captioning and additional BPO services for global enterprise
clients. From its world-class service delivery centers in the
Philippines and Costa Rica, PeopleSupport offers high performance
services with deep industry domain knowledge and expertise,
resulting in customizable and best practice solutions. By
delivering high quality services from offshore locations,
PeopleSupport�s service delivery centers reduce costs, improve
performance and increase revenues. A majority of PeopleSupport's
services are performed in the Philippines, where PeopleSupport is
one of the largest outsourcing companies, employing approximately
8,000 college-educated, fluent English speaking personnel.
Headquartered in Los Angeles, California, with approximately 8,500
employees worldwide, PeopleSupport serves clients in a variety of
industries, such as travel, consumer, financial services,
healthcare, insurance, technology, telecommunications,
entertainment and education. For more information, visit
www.peoplesupport.com.
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