Alorica has entered into an agreement to acquire the stock of Expert Global Solutions, a business process outsourcing company, from One Equity Partners.
One Equity Partners first invested in Expert Global Solutions when its acquired APAC Customer Services in July 2011. In April 2012, APAC acquired NCO Group, also a provider of business process outsourcing services, and rebranded itself as Expert Global Solutions.
Today, Expert Global Solutions (EGS) provides customer management support services through voice, text, chat and email. Services include answering product-related questions, technical support, up-selling and cross-selling. EGS also provides accounts receivable management and revenue cycle management services. Customers of EGS are typically active in the healthcare, financial services, logistics, online retail, technology, telecommunications and utilities sectors. EGS has annual revenues of $1.1 billion and over 40,000 employees in 70 locations across 11 countries. The company is led by Bob Segert, President and Chief Executive Officer, and is headquartered north of Philadelphia in Horsham, PA (www.egscorp.com).
Alorica is a provider of customer management support services to customers in the communications, financial services, healthcare, retail and technology sectors. The company has 53,000 employees and $1.2 billion in revenue. Alorica is headquartered in Irvine, CA (www.alorica.com).
Once combined, the merged companies will have approximately $2.3 billion in revenue, a staff of 52,000 in North America and 38,000 additional employees in the Philippines (26,200) and in Latin America (11,800). Andy Lee, the founder of Alorica, will be the CEO and Chairman of the combined Alorica/EGS organization. He will also be the majority shareholder.
One Equity Partners is the private investment arm of JPMorgan Chase and manages approximately $14 billion in commitments and investments. Founded in 2001, One Equity Partners has 39 investment professionals in New York, Chicago, Frankfurt, and Sao Paulo (www.oneequity.com).
Credit Suisse, Bank of America Merrill Lynch, Bank of the West, BNP Paribas and Wells Fargo have agreed to support the acquisition by providing financing commitments that expand Alorica’s current term loan and revolving credit facility to $1.1 billion.
Credit Suisse and M/Cap Advisors acted as financial advisors to Alorica. Latham & Watkins served as Alorica’s legal counsel. J.P. Morgan Securities was the sole financial advisor to One Equity Partners and Dechert LLP served as EGS’ legal counsel.
The transaction is expected to close by the end of September 2016.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 6-7-16
