Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
In one of the largest-ever cross border Indian BPO acquisitions, TransWorks announced the takeover of Canada-based outsourcing firm, Minacs Worldwide Inc, one of the largest BPO firm in Canada, for $125 milllion in a share and cash deal.
TransWorks, part of the one of the largest Indian corporate groups, the
Aditya Birla Nuvo group, said it will initially buy the 46.4%
promoters’ equity of Minacs and later make an open offer with the
intention to subsequently merge the Toronto-listed company with
TransWorks.
The Aditya Birla group is one of the country’s largest and oldest
business houses with interests ranging from cement and textiles to
commodities and telecom. The acquisition is likely to pitchfork the
group into the top three BPO companies in India, chairman Kumar
Mangalam Birla said.
The group’s strategy is to dominate the areas it is in. It acquired
TransWorks three years ago, and since then it has grown seven times.
Minacs is Canada’s largest BPO with expertise in automotive, telecom
and financial services. Although Minacs has an annual revenue of
$265m, its offer of $125 million is due to the fact, “that the pace
of growth for the BPO business in Canada is slow, ” said TransWorks CEO
Atul Kunwar in a news conference on Saturday..
"It’s a profit making company and after the acquisition, we’ll be able to have a combined revenue of about $300m," he added.
TransWorks will acquire Minacs' promoters' stake of 46.4% and will also
make an open offer to the shareholders of Minacs to acquire the
remaining stake, Birla said.
The entire process is expected to be completed by August.
ReichmannHauer Capital Partners intends to co-invest with TransWorks.
"We would be comfortable offering them up to a 10% stake," Birla said.
The fund requirement of this acquisition would be a combination of debt
and internal accruals from Aditya Birla Nuvo and TransWorks.
The combined business of the two companies would have a revenue base of
$300 million. "We want to be a dominant player in every field. This
acquisition will be a quantum jump for TransWorks. It gives us size and
dominance," Birla said.
Minacs provides customised BPO solutions on three core areas of
capability — contact centre solutions, integrated marketing services
and back office administration. Its strengths are in automotive,
technology, telecom and financial services. The automotive segment
accounts for 68.5% share of Minacs business; technology and telecom
22%, financial services 6% and general business 3.5%.
"TransWorks is not present in the automotive segment. It gets an entry into this area through this deal," Birla said.
In 2005, Minacs reported revenues of C$290.5 million. It has 6,000
employees across Canada, the US, the UK, Germany and Hungary.
David Bass
| For the fourth year in a row, IDC has placed content security provider Websense (NASDAQ: WBSN) at the top of the IDC Worldwide Web Security 2011 –…
How to Make Business Discovery Work for Your Business
Business Discovery takes its cues from consumer apps. Like Google, it encourages us- ers to hunt for and explore data without worrying about or even noticing the underly- ing technology. Their entire experience is working within an intuitive interface to get real-time, self-service results with only minimal training. ...more
Try an easy-to-use set of web-enabled
tools for business-class productivity services. Office 365 provides
anywhere-access to email, important documents, contacts, and calendars
on almost any device.
In one of the largest-ever cross border Indian BPO acquisitions, TransWorks announced the takeover of Canada-based outsourcing firm, Minacs Worldwide Inc, one of the largest BPO firm in Canada, for $125 milllion in a share and cash deal.
Latest Headlines from IT INDUSTRY
