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News >> Technology >>
Mascot to acquire Delhi BPO firm
By siliconindia
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Friday, 04 April 2003, 20:30 IST
BANGALORE: Mascot Systems, a software services company, Friday announced its entry into the IT Enabled Services (ITES) segment with the proposed acquisition of the contact center and facility management businesses of Delhi-based outsourced services provider IT&T Ltd.
The company has signed an agreement to acquire as a going concern, IT&T'S BPO business, by way of a business purchase. It will also acquire IT&T'S Facility Management business by buying out IT&T Technology Services Ltd., a subsidiary of IT&T. The acquisition is subject to approval of Mascot's Board of Directors, terms and conditions of agreement, and other statutory and regulatory approvals.
According to Gartner Group estimates, the global BPO market is expected to reach US$ 234 billion by 2005. NASSCOM and McKinsey have recently increased their projections for the Indian IT Enabled Services market in 2008 to US$ 21 billion from the US$ 18 billion earlier.
IT&T'S domain expertise, proven team and operating experience in Customer Relationship Management, Affinity Marketing and Helpdesk Support will enrich the suite of services offered by Mascot and enable it to provide its clients a complete range of IT services and solutions, the company claims. Mascot has plans to rapidly scale-up the acquired business - both, financially and operationally - over the coming two years by building upon Mascot's established strengths and competencies.
The BPO business will come to Mascot for a cash consideration of $3.95 million, while the Facility Management business will cost $0.5 million. The acquisition will bring in the BPO business of IT&T Limited as a going concern, including over 400 employees, its infrastructure, equipment, facilities, contracts and intellectual property. Mascot will acquire the customers and prospects of IT&T across the United States and Europe. As part of the deal, the vastly experienced executive management team will become part of the Mascot Group and drive the day-to-day business.
The acquisition of the BPO business will be done through Mascot's proposed BPO subsidiary, currently under formation. The Facility Management business, an over 200-people business, which caters to the domestic market, will become a wholly owned subsidiary of Mascot. Further details of the transaction will be shared after approval of Mascot's Board of Directors.