Knowledge process outsourcing (KPO) firm eClerx Services Ltd has entered into a definitive agreement to acquire CLX Europe SPA (CLX), a media company, for up to €25 million ($27.13 million), the company said in a stock market disclosure. The deal is expected to close soon and is likely to be EPS accretive for eClerx.
Post acquisition, CLX will operate as a subsidiary of eClerx Services and its current management team will continue to manage day-to-day operations. The transaction will be funded through eClerx's internal accruals.
Headquartered in Verona, Italy, CLX Europe creates, manages and delivers creative assets globally to the multi-channel market for luxury brands and major retailers. The firm has offices in Germany, the UK, the US, France and Thailand, and has over 350 employees.
Founded in 2000, Mumbai-based eClerx offers data analysis and data process solutions to the retail, manufacturing and financial services industries. This is the only significant listed company in the country in the KPO space. The firm has five delivery centres in Mumbai, Pune and Chandigarh.
For the quarter ended December 31, 2014, eClerx posted a net profit of Rs 60.8 crore against Rs 62.32 crore during the same quarter in FY14. Its net revenue, however, rose to Rs 241.6 crore from Rs 219.5 crore in the same period.
Recently, VC and growth equity investment firm Sequoia Capital exited its around five-year-old investment in eClerx Services with a multi-bagger. It had been selling chunks of its holding over the past few months.
eClerx scrip last traded at Rs 1589.75, down 1.33 per cent on BSE in a flat Mumbai market on Tuesday.
Avendus Capital acted as the exclusive financial advisor to eClerx Services on this deal.
(Edited by Joby Puthuparampil Johnson)