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Brisbane-based Diversify Offshore Staffing Solutions has been fully acquired by a subsidiary National Stock Exchange of India-listed Hinduja Global Solutions (NSE: HGS) in a deal worth $40 million plus an unspecified earn-out.
Under the deal, HGS International Mauritius will take a 100 per cent equity stake in Diversify Offshore, bringing the Australian company and its more than 1,500 staff into the HGS family.
Founded a decade ago, Diversify Offshore delivers its staff offshoring services from the Philippines, providing consumer engagement solutions to its roster of more than 50 clients, 70 per cent of whom are in the Australia & New Zealand (ANZ) region with the balance in the US.
Initially formed to support a law firm, the offshoring company has since grown to support an impressive client base, counting the likes of Domino’s (ASX: DMP), TerryWhite Chemmart, Temple & Webster (ASX: TPW) and Shine Lawyers (ASX: SHJ).
According to a statement released by Bangalore-based HGS to the NSE, Diversify Offshore is expected to report revenues of around $26.5 million in FY22 and is a profitable business that is expected to be margin accretive to HGS.
HGS, which has a market capitalisation of more than $52 billion, says the acquisition will open the company up to the ANZ region and supplement its portfolio in the US.
Additionally, HGS executive director and group CEO Partha Desarkar said the combination of the two organisations will bring in synergies to improve the profitability of the two operations.
“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 four new delivery centres,” Desarkar said.
“Today, Australian firms are increasing their digitalisation 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.”
According to Diversify Offshore’s managing director Angela Vidler, the takeover means the Australian outfit will be primed for major growth.
“The partnership with a global organisation like HGS provides the resources to us and paves the way to drive significantly higher levels of growth,” Vidler said.
“It enhances our brand promise of delivering the most innovative, value-added, and efficient solutions to our clients.
“We are excited about the partnership with the opportunities it offers and will continue to work with our clients to improve their business.”
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