PeopleSupport Inc., a Los Angeles-based outsourcing provider that has been hurt by the weakened U.S. dollar, said it is being purchased for about $250 million in cash by a private Indian competitor.
Aegis BPO, an outsourcing subsidiary of Mumbai-based conglomerate Essar Group, will pay $12.25 a share to PeopleSupport shareholders, PeopleSupport said in a statement on Monday. The deal, which is 9 percent more than Friday's closing price of $9.53, is expected to close in the third or fourth quarter if it is approved by shareholders.
PeopleSupport jumped $2.45, or 26 percent, to $11.97 in early Monday trading on the Nasdaq. Shares had been down 30 percent so far this year before the pre-market announcement.
PeopleSupport, which has about 8,500 employees worldwide, also on Monday announced a second quarter loss which in part was due to a weak U.S. dollar compared to the Philippine peso. The Philippines and Costa Rica are the major sources for the company's overseas workers.
The company provides customer management, transcription and captioning for U.S. companies in the travel, consumer, financial services, technology, telecommunications, health care, insurance and media industries. Its mainly overseas workforce handles transaction such as orders, and customer service questions for its clients.
The company lost $1.3 million, or 6 cents per share, compared with net income of $3.9 million (16 cents) a year ago for the quarter ended June 30. Revenue was up 6 percent to $36.4 million. Analysts surveyed by Thomson Financial had expected net income of 8 cents per share on revenue of $37.7 million.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Manila Rising as Call Center Power
- Aegis Receives Antitrust Clearance for PeopleSupport Acquisition
- Report Socks PeopleSupport Stocks
- IPVG Ups PeopleSupport Bid
- PeopleSupport Shares Sink on Guidance
- Aegis Completes Acquisition of PeopleSupport
- PeopleSupport Stockholders Approve Merger
- Earnings Roundup: PeopleSupport, Univision Communications, Ducommun Inc., Innovo Group