Hinduja Global Solutions to buy 100% stake of Diversify to expand footprint in Australia -; New Zealand (ANZ) region; Stock gains over 1%

31 Jan 2022 , 09:37 AM

Hinduja Global Solutions Ltd. (HGS) has entered into a definitive agreement to acquire a 100% equity stake in Diversify Offshore Staffing Solutions Pty Ltd. (Diversify), Australia. On Monday, the company’s stock was trading on a bullish note.

The transaction is expected to close within the next few days.

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. It will also 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. It bolsters HGS’ portfolio of back-office and non-voice businesses in domains like Digital Marketing, Finance & Accounts, IT services, etc. Combining these two organizations 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 utilization for HGS.

“We are very excited to welcome the 1,100+ employees of Diversify into the HGS family. 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 the Philippines with 4 new delivery centers,” said Partha Desarkar, Executive Director and Group CEO, HGS.

“The partnership with a global organization 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,” said Angela Vidler, Managing Director of Diversify.

Australia-based Diversify provides value-added BPM services, with delivery operations in the Philippines. It provides differentiated consumer engagement solutions to its impressive roster of over 50 clients, 70% of whom are in the Australia & New Zealand (ANZ) region and the others in the US. It has had a robust CAGR of 39% over the last 5 years despite the recent pandemic.

For the year ending 30th June 2022, it is expected to report revenues of around AUD 26.5 million. It is a profitable business and this acquisition will be margin accretive to HGS.

At around 09.33 am, HGS was trading at Rs2549 per piece up by Rs31.95 or 1.3% on Sensex. The stock was near the day’s high of Rs2567.65 per piece.