essar-to-buy-us-outsourcing-firm-peoplesupport

Essar to buy US outsourcing firm PeopleSupport

Indian business group Essar pays $250 million to combine the Nasdaq-listed business process outsourcing firm with its own outsourcing division Aegis.

Sameera Anand

August 06, 2008

IndiaÆs Essar Group is to buy Nasdaq-listed PeopleSupport, a business process outsourcing BPO firm headquartered in California, for $250 million. The acquisition will be executed by EssarÆs subsidiary Aegis BPO, which will merge PeopleSupport into its unlisted subsidiary Essar Services Mauritius.

PeopleSupport shareholders will be paid $12.25 per share in cash, representing a premium of around 29% over PeopleSupport's closing share price on August 1, the last trading day prior to the takeover announcement, and a premium of approximately 42% over the average trading price of PeopleSupportÆs shares during the previous 30 trading days.

PeopleSupport has no debt on its books. For calendar 2007 it had revenues...

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