HGS International Mauritius, a subsidiary of India-based Hinduja Global Solutions, has entered into a definitive agreement to acquire 100% equity stake in Diversify Offshore Staffing Solutions.
Diversify is an Australian enterprise, providing value-added BPM (business process management) services, with delivery operations in Philippines. It provides differentiated consumer engagement solutions to more than 50 clients, 70% of whom are in the Australia and New Zealand region and the others in the United States.
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 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 utilization for HGS.
Partha Desarkar, executive director and group CEO at HGS, said the addition of Diversify along with its workforce of more than 1,100 employees, expands their footprint in the Philippines with four new delivery centers. At the same time, 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,” said Desarkar.
“Today, Australian firms are increasing their digitalisation efforts to become more competitive, develop new ways of digital-led customer engagement, while enabling remote working models,” he added. “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.”
Angela Vidler, managing director of Diversify, said that merging with a global organisation like HGS paves the way to drive significantly higher levels of growth.