The Hindu Business Line : Hewitt Associates merges with Exult

IN a bid to enhance its presence in the global HR outsourcing and consulting business, Hewitt Associates Inc has merged with Exult Inc, a global HR BPO (human resource business process outsourcing) company.

Under the terms of the agreement, Exult stockholders will receive 0.20 shares of Hewitt Class A common stock, on a tax-free basis, for each Exult share (approximately $6.30 per Exult share based on Wednesday's closing price).

According to Mr Dale Gifford, Hewitt Chairman and CEO, "The addition of Exult's comprehensive service mix, Six Sigma expertise and delivery capabilities to Hewitt's integrated HR outsourcing and consulting solutions and operating capabilities, will create a true leader with the most flexible and broad HR solution." With this merger, the company will be a one-stop shop for all HR services, he said.

This Hewitt-Exult combination is expected to bring in four key benefits to the company: ensure a leadership position for the company in a key growth area (HR BPO), offer clients the most comprehensive and flexible solution in the market, and give the company an increased operational functionality and efficiency and increased financial strength.

This merger is expected to have a `considerable impact in the Indian market as outsourcing is one of the fastest growing industries here', according to sources in the industry.

In fact, the growth of the outsourcing industry in India was faster than the global growth and more mergers of this kind would be seen, they said.

However, officials within Hewitt India refused to comment on the issue.

More Stories on : Mergers & Acquisitions | Consulting | Human Resources

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page