Capital Square Partners Merges Aegis BPO Into Startek

Under the deal, the equity firm will get a 55% stake in the combined company, with Startek shareholders controlling the remaining 45%.

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Private equity firm Capital Square Partners (CSP) has merged Aegis BPO into US call center service provider Startek with an additional investment of US$10 million.

Under the deal, the equity firm will get a 55% stake in the combined company, with Startek shareholders controlling the remaining 45%, according to a Startek press release.

The combined company will have over 50,000 employees with delivery centers in 12 countries across 5 continents.

“There’s zero overlap from a geographic perspective,” stated Chad Carlson, Startek President and CEO, on a conference call with investors, adding that there is “zero” client overlap as well.

The top three customers of the combined company would account for less than 30% of overall revenue.

“The combined company will also be able to significantly leverage automation, artificial intelligence (AI) and other technology-led innovations to deliver exponential value to customers globally,” said Sanjay Chakrabarty and Bharat Rao, Managing Partner’s of CSP.

Singapore-based CSP acquired Aegis for US$300 million in November last year.

Aegis currently operates out of eight countries, with more than 20 sites based in India, and reported US$388 million in revenue for 2017. Startek generated approximately US$293 million in revenue for the same period.

Although headquartered in India, Aegis has employed more than 5,500 people in Argentina, where it runs 5 delivery centers in the country’s major cities of Buenos Aires, Tucumán, and Cordoba. Most of its Latin American delivery centers cater to US clients in industry verticals such as banking, insurance, telecom, health, travel, and hospitality.

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CSP has made several investments in the technology services and BPO sectors over the past decade. It ran Minacs, an Indian BPO firm previously owned by Aditya Birla Group, for two years before selling it off to Concentrix in late 2016.

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