Aegis BPO of India merges with US-based PeopleSupport

A subsidiary of India's Essar Group, a US$50-billion conglomerate which is into energy, steel, shipping, communications and construction businesses, has merged with U.S. business outsourcing firm PeopleSupport Inc. for US$250-million. Aegis BPO will pay the latter's stockholders US$12.25 per share, which is 29% more than the closing price last Aug. 1. The deal is expected to be completed before the year ends. PeopleSupport will be delisted from the NASDAQ, and a new company Aegis PeopleSupport, a wholly-owned subsidiary of Aegis BPO, will replace the former. On the other hand, the Philippine operations of PeopleSupport welcomes this new development. PeopleSupport (Philippines) Inc. said in a briefing yesterday (Aug. 6) that the local company will remain focus and continue its expansion project in Baguio City. As per the data of Business Processing Association of the Philippines (BPA/P), PeopleSupport ranked 8th in terms of providing full-time employment in the Philippines.