×

Warning

JUser: :_load: Unable to load user with ID: 468
Monday, 26 June 2006 09:18

Indian BPO firm acquires Canadian firm for $125m

By
ImageIn 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.

Subscribe to Newsletter here

WEBINAR INVITE: Exploring Emerging Strategies for 5G Monetization

Network Operators continue to invest in 5G and build out their infrastructure.

With the recent impact of world events, the pressure is on to explore additional ways beyond traditional subscription models to monetize existing investments and speed up returns.

Creative thinking is key in this space, and in this webinar, you will learn about innovative ideas for Network Operators and Enterprise Business to enable new services and opportunities to drive incremental revenue.

Join us for this thought-provoking webinar with ITR Analyst, Marc Einstein, where you will learn about:

- Key industry 5G trends
- How COVID-19 is driving innovation and potential new business opportunities and applications for 5G

Click below to register your interest for the AUGUST 26, 4PM WEBINAR (AEST)

REGISTER NOW!

PROMOTE YOUR WEBINAR ON ITWIRE

It's all about Webinars.

These days our customers Advertising & Marketing campaigns are mainly focussed on Webinars.

If you wish to promote a Webinar we recommend at least a 2 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://www.itwire.com/itwire-update.html and Promotional News & Editorial.

For covid-19 assistance we have extended terms, a Webinar Business Booster Pack and other supportive programs.

We look forward to discussing your campaign goals with you. Please click the button below.

MORE INFO HERE!

BACK TO HOME PAGE

BACK TO HOME PAGE

WEBINARS ONLINE & DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

ResearchWire

Guest Research & Case Studies

Channel News

Comments