Essar Sells Aegis For USD 300 Mn; Exits BPO Business

by CXOtoday News Desk    Apr 03, 2017


Ruias-led Essar Group today announced the sale of its BPO company Aegis to Capital Square Partners, a Singapore-based private equity fund manager. The sale proceeds are speculated to be around USD 275 to 300 million as it marked Essar’s complete exit from the BPO business.

The net proceeds of the sale are likely to be used by Essar to settle its debt, with the transaction closing in June 2017. 

Essar entered the BPO business in 2004 with the acquisition of the US-based Aegis Communications Group, with 2,000 employees. In 2014, AGC announced the successful sale of Aegis USA Inc (comprising Aegis’ operations in the USA, the Philippines and Costa Rica) to Teleperformance. As a result of the sale, the Aegis headcount and revenues were substantially reduced. Since then, Aegis has once again grown the business substantially in terms of headcount, revenues, product offerings and customer base becoming a preferred vendor for many premium clients in key industries, such as telecommunications, technology, media, banking, financial services & insurance, travel & logistics, retail and ecommerce.

Currently, Aegis has revenues of around US$400 million, and employs more than 40,000 people across 47 centres in 10 countries with operations in India, the UAE, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and the UK.

Uday Gujadhar, Director-AGC, said, “This transaction is in line with our strategy of incubating, building and operating world-class businesses, and being open to monetizing them at a premium value when the market conditions are favourable. I congratulate my colleagues at Aegis for growing the business to a level where it has attracted an investor like CSP, which has extensive domain experience and deep understanding of South East Asia to ensure that the company continues to grow and prosper, thus rewarding both its people and customers.”

Sanjay Chakrabarty and Mukesh Sharda, Managing Partners of CSP, jointly said “We are excited about the opportunity to work with the Aegis management team in embarking on the next stage of growth, by focusing on innovation and adding our sector knowledge and expertise. The Essar group has built this company and achieved significant scale and value creation, and we look forward to continue to build on the core values of customer focus, agility and service excellence of Aegis.

“Aegis has established itself as a high value service provider to its customers. We shall continue to provide quality service to our esteemed customers and be an employer of choice. I am confident that the added capabilities of our new shareholder will present an even more compelling value proposition to the marketplace,” said Sandip Sen, Managing Director, Aegis.

Essar’s advisors in the transaction include Axis Capital as financial advisor, and Platinum Partners and Sidley Austin as legal advisors. Shearman & Sterling and Shardul Amarchand Mangaldas acted as legal advisors to CSP.

The transaction is expected to close during the first quarter of FY 2017-18, subject to receiving regulatory approvals and other customary closing conditions.