Essar and Aegis: USD $610 million deal

Since Essar’s acquisition of Aegis Communication in 2003 up to its sale in two successive tranches in 2014 and 2017, Aegis had grown over tenfold to become a significant player in the outsourcing industry.

Through a judicious mix of organic growth and strategic acquisitions, the company expanded its global footprint across 13 countries. By 2017, it had concluded over 19 acquisitions with a 100% success ratio, in contrast with the 30% success rate of M&As prevalent in the BPO industry.

Essar helped Aegis’ transformation from being a US-based loss making unit with revenues of just $52 million (in 2003) to becoming a leader in the outsourcing sector with revenues of around $1 billion.

Following the 2014 sale of Aegis’ BPO business in the US, the Philippines and Costa Rica to Teleperformance for $610 million, Essar went about rebuilding the rest of the company in growing markets.

Aegis scouted for a chain of fresh acquisitions in Korea and Japan for empowering the Malaysia unit, and enhancing its strength in Latin American and European countries. Aegis forayed into Malaysia by fully acquiring Symphony BPO services in Kuala Lumpur, a business that went on to grow more than threefold, while retaining the business in nine countries— India, Sri Lanka, Malaysia, Australia, Saudi Arabia, UK, South Africa, Peru and Argentina.

In November 2017, Essar sold Aegis’ operations in these nine countries to Capital Square Partners (CSP) for US$ 300 million (approximately Rs.2,000 crore), marking its complete exit from the BPO business. This list below includes some of the major M&As executed by Aegis. It does not include disinvestments made in 2014 with a sale of Aegis USA to Teleperformance for 610 million USD, the recent sale to CSP for 300 million USD.