BANGALORE, India: HGS, a leading provider of outsourcing solutions has acquired 100 % of the common stock of Canada based Customer Relationship Management company - On-Line Support Inc (OLS) at an enterprise value of C$74.85 million in an all cash deal.
OLS is a leading contact centre provider servicing marquee customers across verticals such as media, telecom, technology and BFSI. OLS offers technical support, inbound and outbound sales, customer care and customer retention in English and French languages and has over 1,650 seats at 10 sites in Canada. In FY 2011, it had a turnover of C$63.4 million and currently has close to 1,800 employees. It received the coveted award for "Best Outsourcer for Customer Satisfaction in North America" by the Service Quality Management Group (SQM) in 2006. The CEO and the Senior Management team of OLS will continue in their current roles after the acquisition.
This acquisition presents both the companies with opportunities to cross-sell and up-sell to their existing clients. OLS, with its delivery network in rural Canada, is a reputed, high quality service provider. OLS will benefit from the global network of HGS delivery centers. The synergy will manifest the most in Telecom, where both the companies have strong complimentary capabilities. HGS can offer a broader portfolio of French language offerings to its existing clients.
With this acquisition, consolidated annual revenues of HGS will cross US$ 300 million on run rate basis. HGS now has a presence in 42 delivery centres across the USA, India, Philippines, Canada, Mauritius and the U.K. with offerings in more than 25 different languages. Post the acquisition, the HGS staff strength would be around 21,300 employees worldwide.
The acquisition has been made through its wholly owned US subsidiary HGS Inc.
Commenting on the acquisition, Mr. Partha Sarkar, Global CEOof HGS, said, "Our investment in OLS is in continuation of our endeavor to expand the global footprint of HGS. It also helps us to offer more options to our clients. This acquisition is a strategic fit as it provides us an entry into the Canadian market which offers great promise. The Canadian market has remained relatively untouched by the global recession and is also a market where outsourcing is picking up, contrary to other mature markets. This deal gives us improved economies of scale. We are sure that we will be able to realize the synergies from the combined operations. Post this acquisition, the share of our revenues from US will reduce from 75% to around 60%."
Ross Beattie, the CEO of OLS, added, "We believe that this partnership with HGS will provide us invaluable expertise of managing scale as OLS expands its operations. We see real opportunities for all of us because of the added growth impetus this acquisition will give us.With its extensive global reach and strong presence in US, HGS provides us just the right launch-pad to scale up in Canada. We will be able to offer HGS's unique global delivery model to our customers as we pursue even larger business agreements with them."
About Hinduja Global Solutions (HGS)
HGS, part of the multi-billion dollar conglomerate - Hinduja Group, is a world leader in Customer Relationship and Business Process Management, with a global footprint across North America, Europe, Asia and Africa. With over three decades of experience with some of the world's most recognized brands, it delivers the best practices that drive exceptional results for its clients. Its contact center solutions, back office transaction processing services, domain analytics and process consulting solutions combine operational excellence with functional expertise. It enjoys "Preferred Partner" status with most of its major clients. HGS currently serves over 100 clients through its 32 Global Delivery Centers & employs close to 20,000 people worldwide. HGS is a public limited company, listed on both the leading stock exchanges in India, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It had a turnover of $242 million in the fiscal year 2010-11.
For further information, contact:
Srinivas Palakodeti
Hinduja Global Solutions
pala@hindujagsl.com
+91-80-2573-3841
Mayank Vaswani
Citigate Dewe Rogerson
mayank@cdr-india.com
+91-22-6645-123
SOURCE Hinduja Global Solutions Limited
