Global outsourcing giant Convergys is reportedly close to reaching a deal to acquire Bangalore-based BPO provider Minacs. According to the Indian business daily Mint, the deal could be worth $500 million.
If the deal goes through, Convergys will become a far bigger force in the Latin American outsourcing market. The Cincinnati, Ohio-based firm acquired Stream Global Services in 2014, adding dozens of call centers and thousands of employees to its operation in the region, particularly in Central America.
“An acquisition of Minacs would broaden Convergys’ delivery with sizable nearshore operations in Mexico, the Dominican, and Jamaica as well as offshore in India and the Philippines,” said Melissa O’Brien, research director with HFS Research.
O’Brien stated that Convergys could leverage Minacs’ proprietary marketing automation tools that have been customized for vertical alignment to build out its marketing capabilities.
Although originally a Canadian firm, Minacs became Aditya Birla Minacs after Indian business conglomerate Aditya Birla Group purchased it for $125 million in 2006. Birla Group is often viewed as a counterweight to Tata Group, the parent company of TCS.
“The challenge for Convergys would be to stabilize Minacs leadership and really integrate both culture and capabilities to take it to the next level,” O’Brien added.
Minacs started offering IT services after it acquired PSI Data Systems in 2009. It went on to buy London-based Compass BPO to add finance and accounting services to its portfolio. In the same year, it acquired the Minnesota-based Bureau of Collection Recovery to add accounts receivables management and collections services to its portfolio.
In an interview with Nearshore Americas in 2012, Mincas’ CEO Deepak Patel stressed the company’s ambition to expand rapidly in Latin America. But two years later, Birla Group sold off Minacs to two private equity firms, Capital Square Partners and CX Partners.
Now Minacs is once again up for sale. Minacs runs delivery centers in Mexico and Jamaica.
Even after acquiring Stream, Convergys went on setting up new delivery centers across Latin America. Therefore, the acquisition of Minacs might prompt it to get deeper into Latin America.