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Ayala, Providence Equity buy listed BPO company

Posted September 23, 2008

ETelecare Global Solutions Inc., the largest publicly traded provider of call centers and other outsourced business services, has agreed to be bought by Ayala Corp and Providence Equity Partners for $290 million.

A tender offer in the Philippines and the United States will be conducted by the two acquiring companies for all of the outstanding eTelecare common shares and all of the outstanding eTelecare American Depositary Shares for $9 per share in cash. In a statement, eTelecare said the offer price represents an approximate 76-percent premium over the company’s closing price on Nasdaq on September 18, 2008.

“This transaction allows eTelecare’s shareholders to realize significant value from their investment in eTelecare in a timely manner,” said Gary J. Fernandes, eTelecare chairman. “The company’s acquisition by Ayala Corp. and Providence will also enhance the company’s ability to serve its valued customers. With access to their substantial intellectual and capital resources, the company will be well positioned to expand its role as a leader in the business process outsourcing [BPO] marketplace.”

“Our further investment demonstrates our confidence in the management team and 13,000 plus members of the eTelecare family,” said Fred Ayala, CEO of Livelt, the BPO investment company of Ayala Corp. “Together with our partner Providence, the leading private equity investor in the telecom and media sectors, we will be backing the company as it continues to deliver world class service to its clients.”

“We are excited to partner with such a well established and proven company as Ayala on this investment in eTelecare,” said Julie Richardson, a managing sirector and acting head of Providence’s Asia-Pacific operations. ‘This transaction underscores Providence’s strategy, particularly in Asia, of partnering with local entrepreneurs and industry leaders as part of its investments. Including this transaction, Providence has committed to deals with an aggregate investment of over $1 billion in Asia.”

In a related development, A. Soriano Corp. entered into a support agreement in connection with the tender offer by affiliates of Ayala Corp. and Providence for eTelecare.  In a disclosure to the PSE, Anscor said by signing the deal, the company agreed to tender its shareholdings in eTelecare. The firm  holds 1,883,966 common shares equivalent to about 6 percent of the total outstanding shares of eTelecare.

Founded in 1999, eTelecare Global Solutions is a leading provider of BPO services, focusing on the complex, voice and nonvoice-based segment of customer-care services. It provides a range of services, including technical support, customer service, sales, customer retention, chat and email from both onshore and offshore locations. Services are provided from delivery centers in the Philippines, North America, and Latin America.

Source: Business Mirror, September 23, 2008

 
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