The $15 billion Essar group, a leading business conglomerate in India, has exited from the BPO business by selling its stake in Aegis to Capital Square Partners for $300 million.
Essar will use the proceeds to retire Essar’s debt. Essar aims to reduce its huge debt that is complemented by an asset monetisation program. The proceeds from the sale of Aegis and Essar Oil enabled Essar to retire almost Rs 75,000 crore of debt.
The transaction marks Essar Global’s complete exit from the BPO business after creating significant value through organic growth and strategic acquisitions.
Since the acquisition of Aegis Communication by Essar Group in 2003, Aegis has grown over 10-fold to become a significant player in the outsourcing industry. Aegis expanded its global footprint across 9 countries, namely India, South Africa, Australia, Saudi Arabia, UK, Argentina, Sri Lanka, Peru and Malaysia.
Aegis has done over 19 acquisitions with 100 percent success ratio, in contrast with the 30 percent success rate of M&As prevalent in the BPO industry. In 2014, AGC had sold its stake in Aegis USA Inc comprising Aegis’ operations in the USA, the Philippines and Costa Rica to Teleperformance.
“I am thankful to the Essar management for incubating the BPO business and nurturing it through timely and strategic acquisitions,” Sandip Sen, global CEO of Aegis, said.
Aegis, a leading outsourcing business solutions partner to corporations in the telecom, technology, media, Banking Financial Services and Insurance, travel and logistics, Retail and E-commerce and public sectors, has 40,000+ experts across 47 centers worldwide.