HK telco to buy IPVG's BPO unit
abs-cbnNEWS.com | 08/06/2009 4:19 PM
MANILA - A Hong Kong telecommunications provider is set to acquire the business process outsourcing (BPO) unit of listed technology firm IPVG Corp.
PCCW Teleservices, an indirect wholly-owned subsidiary of Hong Kong's PCCW Ltd., has agreed to acquire the entire issued share capital of IPVG's IP BPO Holdings Pte. Ltd. for up to $22 million.
IPVG said the amount is payable in 2 tranches--an initial tranche of $10 million and a performance-related tranche of up to $12 million 12 months later. After the acquisition of IP BPO Holdings, PCCW Teleservices is expected to have over 5,500 agent positions from the current 2,500.
"The acquisition represents a major step in our growth strategy for contact center businesses. The newly added assets will not only provide us with significant English and Spanish speaking capabilities to complement the core businesses in Hong Kong and mainland China, but also gain us an access to the USA, which is the largest contact center market in the world. It also opens up opportunities for us to serve existing multinational customers for their worldwide customer care needs," PCCW Teleservices Director Tony Bruno said in a statement.
For his part, IPVG Chief Executive Officer Enrique Gonzalez said PCCW's acquisition of IP BPO Holdings gives them a "strong strategic partner" with a "global, multilingual delivery capability."
"This enhances our value proposition to our client base, and we are confident with PCCW as our partner. This collaboration will take our BPO venture to the next level," he said.
IP BPO Holdings holds a 70% equity interest in each of Interactive Teleservices Corp. in the United States and BPO Teleservices Inc. in the Philippines. Interactive Teleservices provides contact center services the US and in Panama, while BPO Teleservices operates 2 facilities in Manila.
Both firms serve customers from the banking and finance, information technology, consumer electronics, and travel sectors.