Aegis to acquire Bharti's TeleTech for $12.5 Mn

By siliconindia   |   Wednesday, 14 November 2007, 20:30 IST
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Mumbai: Aegis business process outsourcing (BPO), an Essar Group company, has signed a share purchase agreement to acquire Delhi-based TeleTech Services - a joint venture between TeleTech Europe and Bharti Ventures. The all-cash acquisition is valued at around Rs 50 crore. This is the seventh acquisition in the last two years by Aegis. It is also planning acquisitions in Europe and southeast Asia, besides India and the US. TeleTech is expected to add $15 million to its revenues in the first year. Aegis employs close to 14,000 employees. The acquisition will add over 2,000 people to Aegis and also bring Bharti Airtel, a mobile company, into its portfolio. The company expects to increase its headcount to 25,000-30,000 in the next 2-3 years. Aparup Sengupta, CEO and MD, Aegis BPO, said, "We are looking at organic and inorganic growth to reach our target of $500 million in revenue in the next two years from $188 million currently. Our M&A team is working in the area of acquisitions. The acquisition will primarily cater to our foray into new geographies." Some of the locations under consideration are Spanish speaking countries and the Philippines, and Vietnam in southeast Asia. Currently, telecom is the largest contributor to Aegis' revenues with a share of 40 percent, followed by BFSI with 20 percent and healthcare contributing about 10-12 percent. Geographically, the US constitutes 60 percent of the company's revenue and the remaining comes from India.