Info-tech

BPO firm HOV Services to merge with Sourcecorp of US

T.E. Raja Simhan Chennai | Updated on March 15, 2011 Published on March 15, 2011

HOV Services Ltd, a Chennai-based BPO company, will merge with Sourcecorp, US, to create a combined company with nearly 14,200 employees and revenue of around $480 million.

Shareholders of HOV and Sourcecorp, a specialty consulting services company, will each control and receive 50 per cent ownership of the combined company that will provide services to some of the Fortune 100 companies. Clients will benefit from expanded service offerings and increased delivery capabilities with over 80 locations in the US, Canada, India, China, Mexico and the Philippines, according to HOV.

Mr Ed Bowman, Chief Executive Officer and President, Sourcecorp, will remain Chief Executive Officer and President of the combined Company, while Mr Suresh Yannamani, President of HOV Services, will become President of BPS.

The transaction is expected to close in the next 45 to 60 days.

HOV with revenue of $159 million is a portfolio company of the HandsOn Ventures, US. It has 8,750 employees (nearly 6,300 in India; 1,500 in US and 650 in China), in 46 global delivery centres. On the other hand, the $322-million Texas-based Sourcecorp, a portfolio company of the Apollo Management of the US, has around 5,550 employees in 37 global centres.

HOV is listed both on the Bombay Stock Exchange and the National Stock Exchange. Even though it is based in Chennai, the Indian promoters hold 0.20 per cent in the company, while foreign promoters have 48.39 per cent stake, according to HOV's latest shareholding pattern available in the Bombay Stock Exchange's Web site.

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Published on March 15, 2011
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