HGS to acquire Diversify Offshore, Australia
31 Jan 2022
Hinduja Global Solutions Ltd. (HGS) said on Saturday that its subsidiary, HGS International Mauritius, has entered into a definitive agreement to acquire a 100-per cent equity stake in Diversify Offshore Staffing Solutions Pty Ltd. (Diversify), Australia. "The transaction is expected to close within the next few days," HGS said in a statement.
Diversify is an Australian enterprise, providing value-added BPM services, with delivery operations in Philippines. It provides differentiated consumer engagement solutions to its impressive roster of over 50 clients, 70 per cent of whom are in the Australia and New Zealand region and the others in the US. It has had a robust CAGR of 39 per cent over the last five years despite the recent pandemic, HGS said.
For the year ending 30 June 2022, it is expected to report revenues of around $A26.5 million. It is a profitable business and this acquisition will be margin accretive to HGS.
Part of the multi-billion-dollar conglomerate Hinduja Group, HGS is a global player in optimising customer experience lifecycle, digital transformation, and business process management, HGS combines automation, analytics, and artificial intelligence with deep domain expertise focusing on digital customer experiences, back-office processing, contact centres, and HRO solutions. employs around 18,800 employees across 34 delivery centres in six countries, For the year ended 31 March 2021, HGS had revenues of $ 753.9 million.
With the acquisition of Diversify, HGS will open up ANZ as a new market, with the addition of a significant number of clients from that region and supplement its portfolio in the US. While most of its current offshore footprint is in the Philippines, this will open up the gates for ANZ offshoring to HGS’ Indian operations.
The asquisition bolsters HGS’ portfolio of back-office and non-voice business in domains like digital marketing, finance and accounts, IT services, etc. Combining these two organisations brings in synergies to improve the profitability of the operations. The complementarity of time zones between Australia and North America is expected to improve the asset utilisation for HGS.
The 1,100+ employees of Diversify will join HGS . Partha Desarkar, executive director and group CEO, HGS, said, "We expect robust business synergies to be generated by this acquisition. 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.”
He added, 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,” Desarkar added.
Angela Vidler, Managing Director of Diversify, said,“The partnership with a global organisation like HGS provides the resources to us and paves the way to drive significantly higher levels of growth. 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.”