Sutherland Global Services, a transnational business process outsourcing (BPO) company, has acquired Mumbai-based Adventity Global Services in an all-cash deal.
Though the company did not disclose the deal size, a Reuters report suggests that the deal value is around $55 million.
VCCircle broke the story on May 7. Amarchand Mangaldas acted as legal adviser on the deal. Delhi law firm S&R Associates advised Sutherland on the transaction, while Spark Capital has acted as investment banker to the deal.
The acquisition is part of company’s plan to target emerging BPO markets in Asia, Africa and the Middle East, it said in a statement.
Sutherland is a private equity backed company which raised funding from Oak Investment Partners and Standard Chartered. It currently has over 26,000 employees with 25 global delivery centres spread across India, Bulgaria, Mexico, Nicaragua, Philipines and Canada.
With this buy, Sutherland gets another 2,500 employees in its fold, apart from geographic reach to some of its target markets. Adventity has operations in New York & Houston in the US, Mumbai & Chennai in India and Dubai in the UAE. It provides analytical research to investment banks, private equity and hedge funds, as well as back office work support for the travel industry. The Reuters report states the firm is looking for $50 million revenue in the next 12 months.
Adventity, which was started by Kumar Subramaniam, Niket Patankar and Vivek Arora with angel backing almost seven years ago, raised $20 million in the first round of institutional funding led by Norwest Venture Partners in 2007. The deal will provide an exit route for the investors which also include DA Capital and CIBC.
Dilip Vellodi, chairman & CEO, Sutherland Global Services, said, in the statement, “The offerings and approach at Adventity completely aligns with our strategic direction of expanding our presence in key verticals through platform based integrated solutions. Adventity will extend Sutherland’s service capabilities and broaden the company’s marquee client base.”
Kumar Subramanian, CEO Adventity, said, “In Sutherland we found a true multi-national with a balanced and global delivery approach. We are indeed excited about joining the Sutherland team and taking our growth plans to the next level.”
Some of the previous deals in BPO space include Aditya Birla Minacs acquisition of Compass BPO Ltd, Intelenet Global Services’, a Blackstone portfolio firm, acquisition of Firstinfo Ltd, and CBay Systems India Pvt Ltd’s acquisition of Spheris India.