Aegis BPO, part of the Indian business conglomerate Essar Group, said it will buy Philippines' back-office outsourcing group PeopleSupport Inc. for $12.50 a share in a deal worth $250 million.
In a conference call, Aegis said the transaction will be funded through Essar's existing resources.
On completion, PeopleSupport will be delisted and the new company will be called Aegis PeopleSupport, Aparup Sengupta, global chief executive and managing director of Aegis BPO, said.
Aegis PeopleSupport will become a wholly owned unit of Aegis BPO and the deal is expected to complete in the third or fourth quarter of 2009.
Read about the news from trusted news sources below:
India's Essar Group to buy U.S. firm for $250 million -Reuters
India's Aegis BPO buys Philippines' PeopleSupport in $250 mln deal - Investor Interactive
India's Aegis BPO to merge with Philippines' PeopleSupport -Forbes.com
India's Aegis BPO to merge with Philippines' PeopleSupport - Tradingmarkets.com
Goodbye PS na ba for some of our friends there?
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11 comments here!:
Funny, IPVG was offering them $404M.... now they get bought for only $250M!!!!
Hilarious Mr. Borja!
Hi Silver! Welcome back.
Yeah that's what thought too. maybe they have some form of special arrangement this time. Who knows... LOL
Thanks for the comment.
I love hearing stories like this. It's nice to occasionally see greed not prevail!
Digging into the details, it seems PS was apprehenisve about the previous IPVG takeover bid because of the uncertainty they reckon with IPVG. Top Honchos were wondering where IPVG can derive the generous $404 million buy-out proposal. That's what their saying now. However, PS was singing a different tune back then when they were being bought by IPVG. They were saying the offer was "too low" for them and share holders didn't like that.
How come so close now to being bought for $250 million? Yeah, I guess PS shareholders aren't greedy. LOL
Fact is, PS as well as some other BPO's are being hard hit by the mild US recession and the owners felt they should sell out before they lose out. Tough...
Tough times indeed for PS. At least they're not folding up. Let's see what happens to them after this.
@silvertooth26 - Bong Borja couldn't have stopped it even if he wanted to. These things go through the CEO and the board.
There's a great chance Bong Borja might even loose his job. Remember, take overs usually entail lay-offs of some redundant positions even in key roles. I've seen that before.
Mr. Borja reveals he will still perform an executive role in the new merged entity but no details on what exactly is his role. Needless to say, he's not even sure he's going to be retained. Poor man.
Ganyan talaga ang buhay parang gulong.
my PS friends were at my party last saturday, its so funny... they said almost every agent is singing aegis songs when they found out about the news... basang basa na daw sila ulan. hahaha. but yeah, they said bong borja might be kicked out of ps center soon...
Bong is too rich. He should give up his position so that his salary be given to the poor agents taking calls.
I hate the buy-out. Indians have been stringent on our Medical Benefits. I have remained loyal to the company for four years as a humble agent and when the company got bought we lost the nicest medical insurance we had with the Americans. I hate the buy-out. Since the Indians took over thay have been stringent on our Medical Benefits. They downgraded it to a plan where we have to shell out money for the hospital downpayment before we get attended with. It's like working in any low-class company. How dare them call themselves a world-class BPO company.!!
Well, the latest blow is when Barak decided to bring callcenter jobs back to the U.S.
Aegis loses another account (April 6, 2009). What accounts and/or clients will come when Indians are notorious for selling financial information of American customers? Hay, buhay...parang life.
Last I heard, they are now taking local accounts that have a stringent interview (5 levels long) yet they pay only 8-10k per agent. Medical benefits are being cut left and right, agents unappreciated...Aegis PS is far worse than when it was just PS. Bad management was when I left the place...just got worse.
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