Mumbai-listed business and knowledge process outsourcing firm eClerx Services Ltd has inked a pact to acquire Personiv, a US-based digital marketing and back office services provider.
eClerx said in a stock-exchange filing it will acquire Austin, Texas-based Personiv, operated by Eclipse Global Holdings LLC, at an enterprise value of $34 million (about Rs 250.5 crore).
The deal also includes earn-out provisions for a period of two years based on revenue and profitability targets, eClerx said, without elaborating.
The acquisition will help eClerx leverage synergies in the digital and customer experience services segment, as well as help in expanding client relationships and its business. It is also earnings-per-share (EPS) accretive and will close by the end of December.
Personiv provides digital, creative, back office and customer contact services to clients. The company has 2,100 employees across three delivery centres in Manila, Gurugram and Coimbatore. The company reported consolidated revenue of $31.94 million, $31.38 million and $19.61 million for 2019, 2018 and 2017.
eClerx employs more than 9,500 people at its offices in the US, UK, India, Italy, Ireland, Thailand and Singapore. The company reported consolidated net sales of Rs 1,437.57 crore for 2019-20 and a net profit of Rs 208.97 crore.
According to its website, eClerx provides services to companies in sectors including financial services, cable, telecommunications, retail, fashion, and media and entertainment. It engages with clients through advisory support, project-based work, or business-as-usual strategic outsourcing support.
This is at least the third acquisition by eClerx over the past decade. In 2015, the company bought CLX Europe SPA for up to €25 million ($27.13 million then). In 2012, it purchased US-based Agilyst Inc. for $16 million, according to VCCEdge, the data and research platform of Mosaic Digital.
The acquisition of Personiv is the latest example this year of a company operating in the IT and knowledge process outsourcing space making an M&A move to augment its product and services portfolio.
In September, for example, Cognizant Technology Solutions Corp acquired 10th Magnitude, a cloud specialist focussed on Microsoft’s Azure platform. The buy marked the Nasdaq-listed IT major’s seventh acquisition this year.
Wipro Ltd has also made at least four acquisitions this year. In October, the company announced an agreement to acquire Encore Theme Technologies Pvt. Ltd, which provides software-as-a-service and cloud solutions to banking and financial services companies. The deal was valued at Rs 95 crore (around $12.8 million).