The Hindu Business Line : EXL keen on growth via acquisition route

New Delhi, July 9 A day after it acquired Schneider Logistics’ business process services operations in the Czech Republic for nearly $5 million, ExlService Holdings said it is still looking out for more buys.

The company, which has the headroom to look at cash acquisitions of up to $75 million, is interested in firms with insurance or transformational capabilities. EXL is also be interested in buy-outs that can help it expand in South Africa or onshore in the US.

“We will accelerate our inorganic growth strategy and look at more M&A activities. We are in dialogue with several players,” Mr Rohit Kapoor, EXL’s President and CEO, told Business Line.

Outsourcing deal

The company has announced the signing of a multi-year outsourcing pact with Schneider Logistics, global leader in logistics and transportation services. The three-year contract is expected to translate into revenues of $6-7 million a year. As part of the transaction, EXL has also acquired the operations of Schneider Logistics, SRO in Olomouc, Czech Republic. While the company declined to divulge the size of the acquisition, industry sources peg it at around $5 million.

The facility currently provides transaction processing services to Schneider and its clients in Europe and the US and has about 220 employees that will transfer to EXL as part of the transaction. The acquisition offers EXL access to multi-lingual capabilities. “We can ramp this to 400 in the next 2-3 years,” Mr Kapoor said.

While Europe accounts for roughly 40 per cent of EXL’s total revenue, all the services were so far delivered from centres in India and the Philippines. The company expects the latest move to boost Europe’s share in total revenue to 50 per cent over a period of three years.

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