TRG buys fifth US call center
RECORDER REPORT
KARACHI (March 30 2004): The Resource Group (TRG), the largest IT enabled service company in Pakistan, has concluded an acquisition of A Alpha Answering Services Inc (A Alpha), which a US provider of telephone answering services located in Temecula, California.
The TRG has made this acquisition through an equity investment in its existing portfolio company, Central Voice, LLC (central voice), which is the entity that, in turn, has acquired the assets of 'A Alpha'.
This transaction represents TRG's fifth acquisition in the US call center services industry and fourth since November 2003.
With the 'A Alpha' acquisition the annual revenue of TRG's portfolio company, Central Voice, has increased by about 30 percent to about $4.2 million, according to a notice issued by the TRG to the Karachi Stock Exchange (KSE) on Monday.
The Central Voice will integrate all A Alpha accounts to its existing facilities in New York and New Jersey, which will result in significant overhead savings. Through this acquisition, he Central Voice will expand its geographical reach to the Western Coast of the US, making it one of the largest nation-wide telephone answering service operations in the country.
The TRG employs an innovative business model, which consists of taking controlling stakes in US call center companies and shifting their operations to its offshore facility in Pakistan. Currently, it employs nearly 150 people at its 10,000 square feet facility in Lahore.
"The 'A Alpha' transaction illustrates the flexibility and robustness of the TRG business model", said TRG Chief Executive Officer Zia Chishti, adding: "This is our second acquisition that has been channelled through a portfolio company and recognises the increasing options available to us as we grow the TRG family. I am extremely pleased to welcome 'A Alpha' into TRG, and trust that together with our partners at the Central Voice, we will be able to realise significant value through our compelling business model".
"The acquisition of 'A Alpha' is the perfect illustration of the TRG value proposition for us", said Central Voice LLC President Thomas Halton, adding: "In the case of 'A Alpha', the Central Voice provided the ideal platform for the TRG to leverage its unique combination of capital resources and offshore service delivery".
Halton has co-invested along side the TRG in the 'A Alpha' transaction, and maintained his 10 percent stakes in the Central Voice.
The TRG is listed on the Karachi Stock Exchange, having raised a total of Rs 600 million in an initial public offering in May 2003, and is in the process of issuing a two for 1 rights shares of Rs 1.44 billion.
The proceeds of these funds are being utilised towards acquisitions of US call center companies as well as the build out of Pakistan-based infrastructure.
Copyright Business Recorder, 2004
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