ASX-listed communications and marketing company, Salmat (ASX:SLM) has purchased Philippines-based outsourced services provider, MicroSourcing International.
The deal involves 50 per cent shares in the business and a performance-based option to acquire the remaining 50 per cent by mid-2016.
It comprises of two tranches with an initial investment of $US7.75 million and an estimated total investment of $US31 million, which will be based on performance incentives.
MicroSourcing provides a range of offshore outsourced business solutions including contact centre services, back office processes, digital creative and development services, which are offered via a range of service delivery models.
Salmat chairman and interim CEO, Peter Mattick, said the acquisition complemented its current growth strategy and it will enable its customer engagement solutions division to expand with capabilities and scale in the Philippines market.
"We've experienced an increase in client demand for offshore services in recent years," Mattick said. "This deal expands our footprint in the contact centre business with more than 4000 seats in offshore locations and also provides a valuable extension of our product offering into offshore digital and back-office services.
"The business has a unique service delivery model which is extremely attractive with an established and stable client base in the USA and Australia, presenting the opportunity for Salmat to extend its other services into new geographic markets."
The MicroSourcing brand will remain along with its current CEO and founder, Philip Kooijman. The deal is expected to be earnings per share accretive after the first year and is expected to be completed on January 31.