Global BPO Services Corp in 'definitive' agreement to acquire Stream Holdings Corporation

30 January 2008

Boston: Global BPO Services Corp. has announced that it has entered into a definitive acquisition agreement to acquire 100 per cent of the outstanding equity in Stream Holdings Corporation.

Stream is a leader in providing global customer relationship management and other business process outsourcing (BPO) services to Fortune 100 companies.

Global BPO Services Corp. was created in 2007 as a special purpose acquisition corporation with the objective to acquire business process outsourcing companies. The special purpose acquisition vehicle raised $250 million in an initial public offering in October 2007. 

The transaction pegs Stream's value at approximately $225.8 million. The merger has the unanimous approval of Global BPO Services Corp.'s Board of Directors, and the Board of Directors and stockholders of Stream.

GBPO has agreed to pay $225.8 million, subject to certain adjustments for working capital, for 100 per cent ownership of Stream. The purchase price will be paid by a combination of the assumption or replacement of existing debt and capital leases totaling approximately $72.2 million, cash payments of approximately $139.3 million and the issuance of approximately 1.8 million units, each consisting of a share of GBPO common stock and a warrant to purchase a share of GBPO common stock at a strike price of $6 per share, valued at $14.5 million in the transaction.

According to a release by GBPO on PRNewswire, it conducted a diligent market search and examined numerous potential candidates in the BPO services industry, targeting primarily CRM, transaction processing, information services, document management and human resource outsourcing companies.