Sykes Merger With ICT Creates BPO Powerhouse
"This transaction gives the combined companies the scale and size needed to effectively compete on a global basis," said John J. Brennan , chairman, CEO and president of ICT Group, in a statement. "We have very little client overlap in the vertical markets that we currently serve and will be able to greatly broaden our reach through this transaction. Upon completion of the merger, we will have the resources and footprint to address the increasingly complex needs of our Fortune 500 client base."
The acquisition creates a company with more than $1.2 billion in revenue. The companies noted in a statement that there is likely to be minimal client overlap, and that the merger will further deepen the companies' expertise within the financial services and telecom markets.
Sykes expects to realize annual cost savings of up to $20 million annually. That's because of the similarities between the companies: Both are global companies that provide customer contact management solutions and services in the business process outsourcing (BPO) arena.
"As clients across the industry move increasingly toward outsourcing more processes to fewer vendors, the breadth and depth of service offerings along with a strong delivery footprint are likely to become a driving force in the industry," Chuck Sykes, president and CEO of Sykes Enterprises, said in a statement.
Sykes added that the focus of his company's acquisition strategy was to buy companies that are complementary to its core, rather than add on new capabilities. That has been the trend of late with vendors such as Xerox and Dell buying solution providers ACS and Perot Systems, respectively.
The deal should close by year's end.