Startek® Enters Into Definitive Agreement to Sell Interest in Contact Center Company
January 11 2023 - 7:35AM
Business Wire
Divestiture Further Strengthens Balance Sheet,
Allows Startek to Focus on Growing Core Business
Startek, Inc. (NYSE: SRT) (“Startek” or the “Company”), a global
customer experience (CX) solutions provider, today announced that
ESM Holdings Limited, an indirect wholly-owned subsidiary of the
Company, has entered into a definitive share purchase agreement
with Arabian Internet and Communications Services Company
(Solutions) to divest its stake in Contact Center Company (CCC) to
Solutions. The agreement is subject to customary closing
conditions, third-party consents and regulatory approvals,
including consents required under the Startek secured revolving
credit facility and senior term loan facility agreement.
Established in 2011 as a joint venture between Startek and Saudi
Telecom Company (STC), CCC has gained significant momentum to
become a premier provider of CX solutions to enterprises in the
Kingdom of Saudi Arabia (KSA). Startek is proud of the lineage CCC
has created in KSA with many notable accomplishments over the
years. Recently, Frost & Sullivan recognized CCC as 2022 Saudi
Arabia Company of the Year Award and Market Leadership Award in the
Contact Center Services industry.
Startek owns 51 percent ownership interest in CCC with the
remaining 49 percent ownership interest held by STC. Pursuant to a
share purchase agreement with Solutions, Startek and STC will
divest their respective ownership interest in CCC at an enterprise
value of SAR450 million, subject to debt-like and working capital
adjustments. At prevailing exchange rates, this values the Startek
stake at U.S. $61.2 million subject to closing adjustments and
capital gains taxes. It is anticipated that Startek will utilize
the net proceeds from the transaction to pay down amounts
outstanding under its secured revolving credit facility and senior
term loan facility agreement.
Startek constantly evaluates its capital allocation strategy and
reviews its business portfolio. Given the many growth opportunities
available to Startek, the company is divesting its stake in CCC to
focus on its core business activities.
"The journey with CCC has been highly successful and I am
grateful to all the associates who have made this possible. I am
confident of their continued success under the ownership of
Solutions,” said Bharat Rao, CEO, Startek. “The divestment of CCC
will support the Startek business as we deleverage the balance
sheet and prioritize growing our core business."
The transaction is expected to be completed during the second
quarter of 2023.
About Startek®
Startek is a global provider of tech-enabled customer experience
(CX) management solutions, digital transformation and technology
services to leading brands. Startek is committed to impacting
clients’ business outcomes by enhancing customer experience and
digital and AI enablement across all touchpoints and channels.
Present in 13 countries, Startek has more than 46,000 CX experts
servicing clients across a range of industries, including banking
and financial services, insurance, technology, telecom, healthcare,
travel and hospitality, e-commerce, consumer goods, retail, energy
and utilities. To learn more, visit www.startek.com
Forward-Looking Statements
The matters regarding the future discussed in this news release
include forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are intended to be identified in this document by the
words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“may,” “objective,” “outlook,” “plan,” “project,” “possible,”
“potential,” “should” and similar expressions. As described below,
such statements are subject to a number of risks and uncertainties
that could cause the actual Startek results to differ materially
from those expressed or implied by any such forward-looking
statements. Readers are encouraged to review risk factors and all
other disclosures appearing in the Company's Form 10-K for the
fiscal year ended December 31, 2021, as filed with the Securities
and Exchange Commission (SEC) on March 14, 2022, as well as other
filings with the SEC, for further information on risks and
uncertainties that could affect the Startek business, financial
condition and results of operation. Copies of these filings are
available from the SEC, the Company’s website or the Company’s
investor relations department. Startek assumes no obligation to
update or revise any forward-looking statements as a result of new
information, future events or otherwise. Readers are cautioned not
to place undue reliance on these forward-looking statements that
speak only as of the date herein.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230111005347/en/
Media Relations Rebecca Gautrey Startek
rebecca.gautrey@startek.com
Investor Relations Cody Cree Gateway Group, Inc. +1
949-574-3860 SRT@gatewayir.com
StarTek (NYSE:SRT)
Historical Stock Chart
From Jun 2024 to Jul 2024
StarTek (NYSE:SRT)
Historical Stock Chart
From Jul 2023 to Jul 2024