Allsec Technologies Ltd has moved from its home turf in Chennai to Bangalore for the first time since its inception, with the acquisition of Bangalore-based B2K Corp Pvt Ltd in an all-cash deal.
The acquisition of B2K helps Allsec to strengthen its outsourcing position in South India. Allsec will take immediate control of operations from its existing shareholders. The deal was signed between the two companies after receiving the company's board's approval.
"Though the pay out structure has been agreed, the final consideration is contingent on the future revenues of the company in the coming months," says Adi Saravanan, founder and president of Allsec Technologies. The deal is expected to be completed before the fiscal year 2006.
B2K is an integrated contact centre with a 600 seat, 51,000sq ft facility located in Bangalore and is involved mainly in the technical support business. B2K also has a healthcare and analytics division, which is not being acquired and will continue to be run by Vivek Kulkarni, CEO, B2K Corp, in his personal capacity.
Kulkarni is incidentally the former IT secretary of Karnataka. Lathika Pai, founder and COO of B2K will continue to run the B2K operations for Allsec Technologies and will head the technical support division from Bangalore.
Adi Saravanan, said "This acquisition gives us a strong foothold into the technical support vertical and though we are doing technical support, the addition of B2K will help us aggressively pursue this business and the domain knowledge available in B2K will ensure consistent high quality service to our customers."
B2K will ramp up to about 500+ employees before end March 2006. "Bangalore is one of the main BPO centres in India and we believe this will be a great addition for us in terms of capacity, talent addition and will also be an excellent option for us to offer 'disaster recovery and business continuity' to our existing customers," Saravanan added.
In November 2003, Talisma Corporation transferred all its outsourcing assets to B2K Corporation for faster growth. Oak Investment Partners, the majority stakeholder in Talisma, held a strategic stake in B2K.
Allsec Technologies Ltd became the first voice-based BPO company to be listed on the Indian bourses with its Rs 60 crore IPO earlier this year.