eClerx Services Ltd, a knowledge process outsourcing (KPO) and business process outsourcing (BPO) services firm, has acquired 100 per cent stake in US-based KPO Agilyst Inc. The acquisition of the KPO firm has been done through eClerx Investments Ltd for an undisclosed amount.
“The consideration for the acquisition will be all cash and includes a substantial earn-out component, based on Agilyst’s future performance,” Sequoia Capital-backed eClerx said in a statement. The deal is being funded through internal cash accruals. The deal will be EPS accretive and is expected to close in near future.
Agilyst will operate as a wholly owned subsidiary of eClerx and its management team will continue to run day-to-day operations.
Avendus Capital was advisor to eClerx while MAPE Advisory Group was the banker to Agilyst on the deal.
The shares of eClerx were trading at Rs 730.05 a unit on the BSE at 12:17 pm on Friday, down 0.64 per cent.
Agilyst is a niche KPO focused on serving the North American media industry. It has around 1,000 employees on board who are mostly located in India. The company is profitable and is expected to generate revenues just under $10 million in FY12. Agilyst’s services include critical error identification, customer experience analysis and end-user support. It has also expanded into tier II cities for low-cost delivery.
eClerx reported 33.4 per cent increase in net sales to Rs 343 crore, with net profit jumping 66 per cent to Rs 123 crore for FY11. Operating revenue for Q3 FY12 was up 51 per cent year on year to Rs 132 crore with PAT up 39 per cent to Rs 49.9 crore during the same period