Bengaluru: US listed BPO company Startek said it had agreed to a deal with Capital Square Partners to buy the private equity firm’s portfolio company AegisBSE 3.34 % in a stock transaction, as consolidation in the sector continues.
Startek will issue Capital Square Partners 20.6 million shares of its common stock in exchange for all of Aegsis’ outstanding shares. Concurrently, the private equity firm will buy an additional 833,333 shares of Startek.
Under the terms of the deal, Capital Square Partners will own about 55% of the combined company and the existing Startek shareholders will own about 45%. CSP will also have the right to appoint a majority of the combined company’s board of directors.
“The combination of Aegis and Startek will create a global enterprise with over 50,000 employees and operations in 12 countries across five continents. The biggest beneficiary in this combination will clearly be our clients,” Aparup Sengupta, chairman of Aegis, said in a statement.
The combined company will have about $700 million in revenue. Aegis reported about $388 million of revenue with $38 million in adjusted EBITDA in 2017. Startek reported about $293 million of revenue, a $1.3 million net loss and $13 million in adjusted EBITDA in 2017.
