Acquisition(s)
11 December 2008
Serco acquires InfoVision Group, India's largest independent domestic BPO
business
Serco Group plc (Serco) today announces that it is entering the fast-growing
domestic Indian business process outsourcing (BPO) market through the
acquisition of a majority shareholding in InfoVision Group (InfoVision).
The acquisition will establish Serco in this market, enable further development
of InfoVision's BPO business, and broaden Serco's existing customer offering.
Through InfoVision, Serco will also launch its brand in India, both in BPO,
and, as the market develops, as a provider of services to the public.
InfoVision is the third-largest BPO company serving the Indian domestic market,
and the largest independent domestic BPO business. The company provides
customer services, database management and back office services. It has more
than 10,000 employees based at seven offices and ten client sites across India.
Its major customers include GE, Talk Talk, HSBC, American Express and ABN Amro.
Serco has acquired a 60% shareholding in InfoVision from its founders, Aditya
and Malina Gupta, for INR977m (£13.3m) in cash, valuing the company, including
its outstanding net debt of around INR371m (£5.1m), at approximately INR2.0bn
(£27.2m). In the year to 31 March 2008, InfoVision's revenues were INR1,722m (£
23.5m). Serco has also agreed to acquire the remaining 40% of InfoVision in two
tranches over the next two years, at a value determined by InfoVision's
financial performance in that period.
Serco has identified strong growth opportunities in the Indian market where GDP
has increased by at least 7% per annum since 2002, with rising incomes creating
an increasing demand from consumers for services and consequently a growing use
of third parties to deliver them. The outsourced domestic BPO services market
is expected to grow in value to around US$1.8bn over the next five years. In
addition to this growth in the BPO market, there is also early evidence that
there will be demand for process outsourcing within the Indian public services
market.
Christopher Hyman, Chief Executive of Serco, said: "India is a substantial,
fast-growing economy and our market entry promises excellent opportunities.
InfoVision is a leading company in the Indian BPO market and we share a
similar, strong culture based on assured delivery, building long-term customer
relationships and organic growth. The Indian domestic markets are growing very
fast and over the longer term this acquisition positions us very well to
provide broader services to the public."
InfoVision President and CEO, Aditya Gupta, said: "Becoming part of Serco will
allow us to sustain strong annual growth in India's domestic BPO market and the
group's breadth of capability and service offerings will enable us to enter new
markets and address new service opportunities. In Serco we have found a partner
that has the same values and thirst for growth as we have. We are very excited
and proud to become a part of the Serco family."
Ends
For further information please contact Serco Group plc: +44 (0) 1256 745 900
Charles King, Head of Investor Relations
Dominic Cheetham, Corporate Communications Director
www.serco.com
About Serco
Serco is an international service company which combines commercial know-how
with a deep public service ethos.
We improve services by managing people, processes, technology and assets more
effectively. We advise policy makers, design innovative solutions, integrate
systems and - most of all - deliver to the public.
Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aviation,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.
More information can be found at www.serco.com.
About InfoVision Group
InfoVision Group is the largest independent domestic BPO business in India.
With over 16 years of experience, its more than 10,000 employees are focused on
delivering solutions in running call centres, loyalty and fulfilment programs,
database management and back office support services for domestic and
international customers. The company has a pan Indian presence in 17 cities and
also has substantial international operations catering to clients in the US,
UK, Singapore, New Zealand and Australia. InfoVision enables customers to
concentrate on their core business by outsourcing their marketing and customer
centric support services and back office operations.