Greater Pacific Capital (GPC), a London-based strategic investment firm, will acquire 38% stake in Ahmedabad-based BPO, Azure Knowledge Corporation, for a consideration of $32.5 million, the company said on Tuesday.
GPC will subscribe to around 26.4% shareholding for $10 million in the first phase while the balance will be invested in 2010 based on Azure’s performance evaluation. The strategic investment will enhance Azure’s position as a specialist company in the two upcoming and promising domains—financial services and knowledge-based customer interaction services.
It is in line with GPC’s investment model based on identifying and taking stake in strong, high potential public and private companies in the highest growth industries within India and China, the company said in a statement.
The biggest investment in a third-party KPO in western India is expected to fuel Azure’s appetite for inorganic growth. This is following Azure’s acquisition of 49% stake in US-based Citizens Financial Mortgage in April, 2008. “Our relationship with GPC will bring in strategic technology, significant board level guidance and open up opportunities in Europe,” said Azure CEO Dushyant Joshi.
Joe Sealy, co-founder-promoter of GPC and former managing director in the investment banking division at Goldman Sachs, will join the Azure board along with Pradeep Udhas, managing director GPC, India and former global partner-in-charge sourcing advisory services with KPMG. The promoters of Azure, Dushyant Joshi and Jay Ruparel, will continue to hold majority stake in the company.
“We have been growing at more than 200% over the last two years and to sustain this rate and help us with our inorganic growth plans, we were looking for capital infusion from an investor that would add strategic and intellectual value along with financial investment,” Joshi added.
He added that Greater Pacific Capital will bring in a lot of visibility and significant board level guidance to drive Azure’s future growth plans. Azure will invest half the money to acquire local KPO and BPO firms. It is also nurturing plans to acquire a market research or financial investment company in the UK.
A part of the money will also be invested in acquiring senior management employees, technology upgradation and sales structure, Joshi said.
GPC is a leading investment firm designed to capture the opportunity of high growth in the Indian and Chinese economies. The company focuses on creating proprietary special situations based on a distinctive sourcing and execution formula that combines strategic ideas, relationships and capital.
Source: Economic Times