HGS International Mauritius, a subsidiary of Hinduja Global Solutions Ltd. (HGS), has entered into a definitive agreement to purchase a 100% ownership position (21,980 shares) in Diversify Offshore Staffing Solutions Pty Ltd. (Diversify) in Australia. The deal is likely to close in 30 to 35 days.
Diversify is an Australian company that provides value-added business process management services with delivery centres throughout the Philippines. It has an amazing portfolio of over 50 clients, with 70% of them based in Australia and New Zealand (ANZ) and the rest in the United States. Despite the recent epidemic, it has had a strong CAGR of 39% over the last five years. It is estimated to record revenues of roughly AUD 26.5 million for the fiscal year ending June 30, 2022. It’s a profitable company, and this acquisition will help HGS grow its margins.
With the acquisition of Diversify, HGS will get access to a new market in Australia and New Zealand, as well as a large number of new clients from that region. It will also add to its portfolio in the United States. While the majority of ANZ’s present offshore activities are in the Philippines, this will allow ANZ to shift to HGS’ Indian operations. It adds to HGS’ back-office and non-voice business portfolio in areas like Digital Marketing, Finance & Accounts, IT services, and so on. By combining these two organisations, synergies are created, allowing the operations to be more profitable. The time zone complementarity between Australia and North America is predicted to boost HGS asset utilisation.
“We are thrilled to welcome Diversify’s 1,100+ employees to the HGS family. This deal is expected to provide significant business synergies. High-growth, value-added, and margin-accretive enterprises will find ANZ to be a very appealing market. A substantial number of seasoned domain specialists in sectors such as professional services, retail, and telecommunications will shortly join HGS as a result of this agreement. With four additional delivery locations in the Philippines, we’ve increased our reach in the country “HGS Executive Director and Group CEO Partha Desarkar stated.
“Our cooperation with HGS provides us with resources and lays the road for us to achieve substantially higher levels of growth. It strengthens our brand promise to provide our clients with the most innovative, value-added, and efficient solutions possible. We’re delighted about the relationship and the prospects it presents, and we’ll keep working with our clients to help them grow their businesses “Diversify’s Managing Director, Angela Vidler, stated.