Aegis Global, STARTEK to merge

AegisBPO major Aegis Global, a portfolio company of Capital Square Partners (CSP), and rival STARTEK Inc. will combine their business process outsourcing services businesses.

Earlier, Essar group exited from Aegis Global.

CSP will own 55 percent and STARTEK will own 45 percent of the combined company. CSP will also have the right to appoint a majority of the combined company’s board of directors as part of the merger deal approved by both boards.

“This marks the return of Aegis into the United States and Philippines, a capability that will allow us to deliver enhanced value to global customers,” Aegis Global CEO Sandip Sen said in a statement.

The media statement did not mention anything about the future role of STARTEK CEO Chad Carlson, Aegis Global CEO Sandip Sen and Aegis Global Chairman Aparupa Sengupta.

The combined company will be able to significantly leverage automation, Artificial Intelligence and other technology-led innovations.

Aegis generated $388 million of revenue with $38 million in EBITDA in 2017. STARTEK generated $293 million of revenue, a $1.3 million net loss and $13 million in EBITDA in 2017.

The top three customers of the combined company will represent 30 percent of the total revenue in 2017. The combined capital structure is expected to include approximately $180 million of debt.

The combination of Aegis and STARTEK will create a global enterprise with over 50,000 employees and operations in 12 countries across five continents.