Essar to sell Aegis its US, Philippines and Costa Rica operations

Essar Group has signed an agreement with Euronext-listed outsourcing technology firm Teleperformance to sell the US, the Philippines and Costa Rica operations of its outsourcing firm Aegis USA.

The company will continue to maintain BPO businesses across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and UK.

AUI has revenues of $400 million and more than 19,000 full time employees across 16 centers in these three countries, which Aegis is exiting. The company serves premium clients in the US market in various key growing industries such as healthcare, financial services, travel and hospitality, Aegis said in a statement.

The transaction is expected to close during the third quarter of 2014, subject to receipt of certain regulatory approvals and other conditions. The transaction is not subject to a financing condition, it said.

''We would like to announce the sale of AUI. This transaction fits the strategic objectives of Essar Fund in the rapidly growing high quality assets and delivering value creation, in this case through a sale to a high quality strategic player in Teleperformance. This transaction will also yield many synergies and benefits for Aegis' employees and esteemed customers,'' said Uday Gujadhur, Board Member, Essar Capital and fund manager, Essar Global Fund.

''We look forward to continue to grow the Aegis portfolio in our other markets including India, Malaysia, Australia, Middle East, Europe and Latin America,'' Gujadhur added.

Essar enteed the BPO business through the acquisition of Aegis Communication Group, USA in 2004.

Afer the divestment, Aegis would have operations in 37 locations across nine countries with more than 37,000 employees. Aegis services clients across verticals such as banking and financial services, insurance, technology, telecom, healthcare, travel and hospitality, consumer goods, retail, and energy & utilities.