BREAKING NEWS!Sykes merge with ICT

[Melody Blakely]

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What can you say about this guys?

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Sykes Merger With ICT Creates BPO Powerhouse

By Jennifer Bosavage, ChannelWeb

6:01 PM EDT Thu. Oct. 08, 2009
Following a spate of acquisition activity in the business processing outsourcing space, Sykes Enterprises (2009 VAR 500 No. 107), will merge with another services and solutions outsourcing firm, ICT Group. Sykes will pay $263 million for ICT.

"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.

[johnnyblues]

You're 3 days late. But thanks for posting the article.

[Melody Blakely]

3 days? 1 ra gani Phil Time..And mam, pasensya na po,karon pa mi nag-meeting, that's why this just came out today. And it is stll Oct 8 in the U.S.

[SioDenz]

unsay effect ani na merger?

[Sol_Itaire]

comment: the only constant thing is change

funny how some call center agents brag too much about how 'better' their companies are. next thing they know, their company's closing or merging with another one.

learn!

[johnnyblues]

3 days? 1 ra gani Phil Time..And mam, pasensya na po,karon pa mi nag-meeting, that's why this just came out today. And it is stll Oct 8 in the U.S.

If you're basing the release of this news article as the actual date the news was broken out, then yes you are correct; but this development has been circulating as early as 3 days ago. Not that it's relevant or anything... just saying...

[BONG2Y]

just want to share as well...

SYKES and ICT Group, Inc. Sign Definitive Merger Agreement



Earlier today SYKES announced its plans to acquire ICT Group, a provider of customer management and business process outsourcing solutions. The transaction, approved by both Boards of Directors, is expected to close as soon as December 2009.

The SYKES’ Executive Team believes that the merger with ICT Group is an exciting opportunity, offering vast global resources, deeper vertical expertise and similar service values. To begin with, ICT Group is a reputable company in the outsourcing industry, with more than 18,000 employees worldwide serving customers from 40+ operations centers throughout North America, Europe, Latin America, Australia, India and the Philippines. They have offered business process outsourcing solutions to Global 1000 companies for more than 20 years, providing specialized experience and knowledge in key verticals such as financial services, communications, healthcare and more. Since 1984, ICT Group’s mission, much like SYKES’, has been to make their customers more profitable and more efficient while building customer loyalty for the brands they’ve served. What’s more, they have worked with their clients as a valuable partner, finding ways to deliver better service with every customer interaction through continuous process improvement – the challenge to be better than their best.

This combination will further expand opportunities for SYKES’ clients, employees and shareholders. The combination of the two companies will enhance and expand SYKES’ global footprint, deepen SYKES’ vertical expertise and expand its service portfolio while maintaining its financial strength. All in all, SYKES’ competitive position will grow stronger with this merger, and a competitive company, in turn, is able to offer unique opportunities to its employees for growth and career development.

Until the transaction period of this agreement is complete, anticipated in December 2009, SYKES’ goal is to maintain business as usual. This means SYKES employees should remain focused on delivering the customer care upon which SYKES’ clients have come to depend. SYKES is thrilled to add ICT Group’s employees and their experience to its organization, and looks forward to the opportunities the combined company will bring to its employees, clients and shareholders alike.

[Melody Blakely]

FACT: Sykes only bought 39% of the stocks of ICT. It needs to have 51% stocks for a company to control the other company.

[Melody Blakely]

Which means that operations on both company would still remain as ease except for those who are in the management positions, like the CEO, VP, HR, Recruitment, etc...

[whisperer]

i agree with you Melody.. I am currently working for Sykes. The merger will really be something next year for both ICT and Sykes.