Aegis, StarTek complete merger; Lance Rosenzweig appointed as global CEO

Capital Square Partners, parent firm of Aegis, will own 55% and StarTek shareholders will hold around 45% stake in the resultant entity

BPO firms Aegis and StarTek on Sunday announced completion of their merger, with the combined entity having revenue of over $700 million and workforce of 50,000 employees across 13 countries, including India.

The combined entity, which will remain publicly listed on the New York Stock Exchange under the name 'StarTek, Inc', will be now headed by Lance Rosenzweig as the Global Chief Executive Officer.

"This transaction is expected to be value accretive for the new company with access to world's most rapidly growing markets, multi-lingual offerings, strong footprint and the institution of operational excellence capabilities and industry best practices," Aparup Sengupta, chairman of the Board of Directors of the combined business, said in a statement.

Capital Square Partners, parent firm of Aegis, will own 55 per cent and StarTek shareholders will hold around 45 per cent stake in the resultant entity.

Aegis in India employs over 28,000 people across over 27 BPO centres. It's major verticals include telecom, e-commerce and BFSI (banking, finance services and insurance).
 

There is no overlap in the geographic presence as StarTek has over 12,000 employees across the US, the Philippines, Honduras and Jamaica while Aegis has over 45,000 employees across India, Sri Lanka, Malaysia, Australia, Saudi Arabia, South Africa, Argentina and Peru, an Aegis spokesperson said.

The newly-appointed CEO Rosenzweig said: Our employees have been the core of our success and with this alignment, we are excited to integrate talent, experience, products and services in order to be able to transition into a global leader in the BPM (business process management) space."
 

The company has entered into an employment agreement with Rosenzweig which provides for the grant of an inducement equity award to him outside of StarTek, Inc, the statement added.

The inducement grant to Rosenzweig will consist of options to purchase 584,000 shares of the company's common stock, with the option to have a ten-year term and an exercise price equal to the fair market value of a share on the date of grant.

The options will be scheduled to vest in equal quarterly installments over three years following Rosenzweig's start date, subject to his continued employment with the company on the applicable vesting dates, according to the statement.