Hinduja Global Solutions Ltd’s (HGS)’s subsidiary, HGS International Mauritius, has entered into a definitive agreement to acquire 100% equity stake in Diversify Offshore Staffing Solutions Pty Ltd (Diversify), Australia. The transaction is expected to close within 30-35 days.
The acquisition of Diversify will open up Australia and New Zealand (ANZ) as a new market for HGS Philippines, with the addition of a significant number of clients from that region. It will also supplement the company’s portfolio in the US.
HGS Philippines will gain a large number of experienced domain experts in verticals such as professional services, retail, and telecommunications across four new delivery centres in the Philippines. While most of its current offshore footprint is in the Philippines, this will open up more avenues for ANZ offshoring to HGS’ Indian operations, while bolstering HGS’ portfolio of back-office and non-voice business in domains such as digital marketing, finance and accounts, IT services, etc.
Diversify is an Australian enterprise, providing value-added business process management (BPM) services, with delivery operations in the Philippines. It provides differentiated consumer engagement solutions to its more than 50 clients, 70% of whom are in the Australia & New Zealand (ANZ) region and the others in the US.
Diversify clocked a CAGR of 39% over the last five years and for the year ended 30 June, 2022, it is expected to report revenues of around AUD 26.5 million. “It is a profitable business and this acquisition will be margin accretive to HGS,” HGS said in a statement.
“We are very excited to welcome the 1,100+ employees of Diversify into the HGS family. We expect robust business synergies to be generated by this acquisition. ANZ is a very attractive market for high-growth, value-added and margin-accretive businesses. As a result of this partnership, a large number of experienced domain experts in verticals such as professional services, retail, and telecommunications will soon become a part of HGS. This also expands our footprint in Philippines with 4 new delivery centres,” said Partha Desarkar, executive director and group CEO, HGS.
“Today, Australian firms are increasing their digitalization efforts to become more competitive, develop new ways of digital-led customer engagement, while enabling remote working models. We believe our foray into ANZ through this acquisition provides a huge opportunity for HGS to cater to the digital needs of Diversify’s clients through our solutions in analytics, automation, AI, and cloud telephony,” he added.
Source: Mint