HGS, a provider of outsourcing solutions, has
acquired 100 percent of the common stock of Canada based Customer Relationship
Management company – On-Line Support Inc (OLS) at an enterprise value of
C$74.85 million in an all cash deal.
OLS is a contact centre provider servicing
marquee customers across verticals such as media, telecom, technology and BFSI.
OLS offers technical support, inbound and outbound sales, customer care and
customer retention in English and French languages and has over 1650 seats at
10 sites in Canada.
In FY 2011, it had a turnover of C$63.4
million and currently has close to 1800 employees. It received the coveted
award for Best Outsourcer for Customer Satisfaction in North America” by the
Service Quality Management Group (SQM) in 2006. The CEO and the Senior
Management team of OLS will continue in their current roles after the
acquisition.
This acquisition presents both the companies
with opportunities to cross-sell and up-sell to their existing clients. OLS,
with its delivery network in rural Canada, is a reputed, high quality service
provider. OLS will benefit from the global network of HGS delivery centers. The
synergy will manifest the most in Telecom, where both the companies have strong
complimentary capabilities. HGS can offer a broader portfolio of French
language offerings to its existing clients.
With this acquisition, consolidated annual
revenues of HGS will cross US$300 million on run rate basis. HGS now has a
presence in 42 delivery centres across the USA, India, Philippines, Canada,
Mauritius and the U.K. with offerings in more than 25 different languages. Post
the acquisition the HGS staff strength would be around 21,300 employees worldwide.
The acquisition has been made through its
wholly owned US subsidiary HGS Inc.
By Telecomlead.com Team
editor@telecomlead.com
