PeopleSupport, Inc. (PSPT) has announced a definitive agreement to merge with Aegis BPO, a global business process outsourcing provider, through Essar Services (Mauritius), Aegis’s wholly owned subsidiary. This merge of companies will be achieved through a cash transaction with an aggregate equity value of approximately $250M, and has been unanimously approved by the boards of directors of both companies.
Aegis BPO is one of India’s fastest growing BPO companies with an annual revenue of over USD $320M. The company services some of the world’s largest corporations in the telecom, banking, insurance and healthcare verticals through its 25 delivery facilities in the U.S. and India. Aegis is part of the ESSAR Group, a globally diversified conglomerate with business interests in steel, energy, power, communications, shipping & logistics, and construction, which has an estimated enterprise value of over USD $50B.
Under the terms of the agreement, Aegis will pay PeopleSupport stockholders $12.25 per share in cash through Essar Services. This payment represents a premium of approximately 29% over PeopleSupport’s closing share price on August 1, 2008, and a premium of approximately 42% over the average trading price of the company’s shares during the previous 30 trading days. The transaction is subject to several conditions that include stockholder approval, regulatory approval and certain other customary closing conditions, and is expected to close in the third or fourth quarter of this year.
Let us hear your thoughts below:
