SINGAPORE and GREENWOOD VILLAGE, Colorado, July 20, 2018 /PRNewswire/ --
- Combined pro forma revenues
exceeding US$700
million
- An affiliate of Capital Square Partners owns
approximately 55% and STARTEK shareholders
existing prior to the consummation of the transaction own
approximately 45% of the combined business
- Lance Rosenzweig appointed as
the Global CEO of the combined business, which has
a presence across 66 business process
outsourcing locations, 13 countries and 6
continents
Aegis, a portfolio company of Capital Square Partners (CSP), and
StarTek, Inc. (NYSE: SRT) (STARTEK), both leading providers of
outsourcing and technology services, have announced today that they
have completed a business combination transaction between the
companies to create a leader in customer experience management.
Aegis and STARTEK had previously announced that they had entered
into a definitive agreement on March 14,
2018 relating to a strategic transaction to create a
combined business of meaningful scale with combined pro forma
2017 revenues exceeding US$700 million.
(Logo:
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)
With the consummation of this transaction, an affiliate of CSP
now owns approximately 55% and STARTEK shareholders existing prior
to the consummation of the transaction own approximately 45% of the
combined business.
Aparup Sengupta, Chairman of the Board of Directors of the
combined business said, "This transaction is expected to be value
accretive for the new company with access to world's most rapidly
growing markets, multi-lingual offerings, strong footprint and the
institution of operational excellence capabilities and industry
best practices. This integration will largely benefit our customers
with enhanced capabilities, strong leadership, economies of scale
and product innovation."
The combined business will remain publicly listed on the NYSE
under the name "StarTek, Inc." and the ticker symbol "SRT," and the
headquarters will remain outside of Denver, CO. The combined business has
over 50,000 employees and a significant presence across 66 business
process outsourcing (BPO) locations in 13 countries and 6
continents.
STARTEK has also announced the addition of Lance Rosenzweig as the Global CEO of the
combined business. This development is aimed at strengthening
leadership culture to significantly diversify revenue base, driving
innovation and expand into new growth markets, while enhancing
margin and profitability.
Lance Rosenzweig, Global CEO, of
the combined business said, "Our employees have been the core of
our success and with this alignment, we are excited to integrate
talent, experience, products and services in order to be able to
transition into a global leader in the BPM space. We will continue
to drive technology innovation and provide world-class support and
value to our clients globally."
In connection with Mr. Rosenzweig's appointment, the Company has
entered into an employment agreement with Mr. Rosenzweig, which
provides for the grant of an inducement equity award to Mr.
Rosenzweig outside of the StarTek, Inc. 2008 Equity Incentive Plan,
in accordance with NYSE Rule 303A.08. The agreement and grant
have been approved by the Compensation Committee of the Company's
Board of Directors, and the grant is an inducement material to Mr.
Rosenzweig agreeing to enter into employment with the Company.
The inducement grant to Mr. Rosenzweig will consist of options
to purchase 584,000 shares of the Company's common stock, with the
options to have a ten-year term and an exercise price equal to the
fair market value of a share on the date of grant. The
options will be scheduled to vest in equal quarterly installments
over three years following Mr. Rosenzweig's start date, subject to
his continued employment with the Company on the applicable vesting
dates.
Shearman & Sterling LLP acted as legal counsel for Aegis.
William Blair & Company, LLC
acted as STARTEK's financial advisor, and Jenner & Block LLP
acted as STARTEK's legal counsel.
About STARTEK
STARTEK strives to be the most trusted BPO service provider
delivering comprehensive contact center and customer engagement
solutions. Our employees, whom we call Brand Warriors, are enabled
and empowered to promote and protect our clients' brands. For over
30 years, these Brand Warriors have been committed to making a
positive impact for our clients' business results, enhancing the
customer experience while reducing costs for our clients. With the
latest technology in the BPO industry and our STARTEK Advantage
System, our Brand Warriors instill customer loyalty through a
variety of multi-channel customer interactions, including voice,
chat, email and IVR. Our service offerings include sales support,
order processing, customer care and receivables management and
customer analytics. For more information, please visit
http://www.STARTEK.com.
About Aegis
Aegis is a leading outsourcing business solutions partner to
global corporations in the telecom, technology, media, banking
financial services and insurance, travel and logistics, retail and
e-commerce and public sectors. 40,000+ Aegis experts across 44
centers worldwide deliver customer lifecycle management, technology
services, back office services and social media analytics to power
superior business results for clients. Visit
http://www.aegisglobal.com to learn more about solutions for global
enterprises and their customers.
About Capital Square Partners
Capital Square Partners is a private equity fund manager based
in Singapore, and regulated by the Monetary Authority
of Singapore (MAS). It primarily invests in buyouts and
control investments across multi-geography cross border
businesses, with deep sector expertise and focus on technology,
media and telecommunications, business services, healthcare, and
consumer sectors. It has made a number of investments in the
technology services and BPO sectors, and has extensive operational
expertise in these areas. Additional information on CSP can be
found at http://www.capitalsquarepartners.com.
Cautionary Note on 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, which provides a safe
harbor for forward-looking statements made by or on behalf of
STARTEK. Such forward-looking statements can be identified in this
document by the words "anticipate," "believe," "can," "continue",
"could," "estimate," "evaluate," "expect," "forecast," "guidance,"
"intend," "likely," "may," "might," "objective," "outlook," "plan,"
"predict," "probably," "project," "possible," "potential,"
"should," "view," or will," or the negative thereof or other
variations thereon or comparable terminology. As described below,
such statements are subject to a number of risks and uncertainties
that could cause STARTEK's actual results to differ materially from
those expressed or implied by any such forward-looking statements.
These factors include, but are not limited to, risks relating to
our reliance on a limited number of significant customers, lack of
minimum purchase requirements in our contracts, the concentration
of our business in the communications industry, lack of wide
geographic diversity, maximization of capacity utilization, foreign
currency exchange risk, risks inherent in the operation of business
inside and outside of the United
States, ability to hire and retain qualified employees,
increases in labor costs, management turnover and retention of key
personnel, trends affecting companies' decisions to outsource
non-core services, reliance on technology and computer systems,
including investment in and development of new and enhanced
technology, increases in the cost of telephone and data services,
unauthorized disclosure of confidential client or client customer
information or personally identifiable information, compliance with
regulations governing protected health information, our ability to
acquire and integrate complementary businesses, compliance with our
debt covenants, ability of our largest stockholder to affect
decisions and stock price volatility.
You are cautioned to not place undue reliance on STARTEK's
forward- looking statements. These forward-looking statements
are, and will be, based upon management's then-current views and
assumptions regarding future events and operating performance and
are applicable as of the dates of such statements. Certain
additional factors that management believes could cause actual
outcomes and results to differ materially from those described in
the forward-looking statements are set forth in Item 1A (Risk
Factors) in the most recent filings of STARTEK's Quarterly Report
on Form 10-Q and the Annual Report on Form 10-K filed with the
Securities and Exchange Commission and in other reports filed by
STARTEK pursuant to the Securities Exchange Act. STARTEK does not
assume any duty to update or revise forward- looking statements,
whether as a result of new information, future events or otherwise,
as of any future date.
Media Contacts
Danveer Bhasin - Aegis
danveer.bhasin@aegisglobal.com
+91-993-013-5788
Kelly Hilton - STARTEK
kelly.hilton@startek.com
+1-502-435-7040
SOURCE Aegis Limited