California-based business process outsourcing company Alorica Inc. said Tuesday it will acquire Expert Global Solutions to create a new global organization with 91,000 employees, including 26,300 Filipinos.
Alorica said in a statement it entered into a stock purchase agreement to acquire EGS to form a new group with combined revenues of $2.3 billion.
It said the new Alorica would be staffed by 52,000 industry experts in North America and more than 38,000 across the globe, with 26,300 based in the Philippines and 11,800 in Latin America.
These professionals will be engaging customers in more than 30 languages in all channels.
It said in the Philippines, the new Alorica would be comprised of 17 contact centers with 26,000 employees and would be led by Bong Borja, the former chairman of the Information Technology and Business Process Association of the Philippines.
The combined company will integrate strengths from both companies with an emphasis on transforming the customer experience through data-driven insights.
Alorica founder Andy Lee would be the chairman and chief executive of the new organization which is based in Irvine, California.
“This blend of talent allows us to better serve customers because of our substantial global footprint, broad and deep vertical expertise and industry-leading solutions. More importantly, we share the same commitment to our people, passion for our clients and integrity in our business,” said Lee.
EGS president and chief executive Bob Segert said “the combination of our companies creates innovative capabilities to deliver world-class customer experiences, with an even broader suite of solutions.”
The new Alorica will serve more than 600 clients, supporting customers through every channel, including voice, mobile, chat, social media and video.
Lee said the timing of the acquisition was critical especially for future contracts as “more companies are looking for industry-specific customer experience solutions.”
“With our domain expertise in nine major verticals, particularly in healthcare, communications, retail and financial services, we’ll be well positioned to tailor the right mix of talent, capacity, analytics and technology to deliver solutions for every client,” he said.
The acquisition is subject to customary closing conditions, including applicable regulatory requirements. The companies expect to complete the transaction with regulators’ approval by early third quarter of 2016.
EGS is a portfolio company managed by One Equity Partners, a leading middle-market private equity firm with offices in New York and Chicago, and advisory offices in Frankfurt and São Paulo.
Credit Suisse and M/Cap Advisors acted as financial advisors to Alorica and Latham & Watkins LLP served as Alorica’s legal counsel. J.P. Morgan Securities Llc was the sole financial advisor to One Equity Partners and Dechert LLP served as EGS’ legal counsel.
In conjunction with this transaction, Credit Suisse, Bank of America Merrill Lynch, Bank of the West, BNP Paribas and Wells Fargo provided financing commitments to expand Alorica’s term loan and revolving credit facility to $1.1 billion.
McGuireWoods LLP served as counsel to Alorica and its subsidiaries in connection with the financing.
