eClerx Services gains on acquring US-based firm

eClerx Services rose 1.47% to Rs 881 after the company announced the acquisition of Eclipse Global Holdings LLC (Personiv).

Personiv is an Austin, Texas-headquartered business process management and services company focused in the outsourced accounting space.

Through this acquisition, eClerx adds over 2,000 team members and three delivery centers to its more than 8,500 employees and 14 locations worldwidetaking their combined headcount upwards of 11,000-strong.

Personiv, an outsourcing services provider with 35 years of experience and offices in the U.S., India, and the Philippines, adds a robust outsourced accounting solution to the company's digital, customer operations, and financial market offerings.

PD Mundhra, eClerx's co-founder and executive director stated, "We have been impressed by Personiv's capabilities, which have reflected in the deep and meaningful client relationships that they have developed over the years. We feel that our two companies share a strong people and client-centric culture and are a good fit as partners.

Through this acquisition, we add new clients - many in the underserved small and medium-business sector - deepen service capabilities in digital and customer care, and add finance and accounting as a service. Personiv's locations across India and the Philippines provide additional delivery capabilities, and we add a very capable management team to the eClerx family."

eClerx looks forward to strengthening its unique delivery model and differentiated offerings with the acquisition of Personiv. The acquisition closed on 23 December 2020, and eClerx has funded the purchase with available cash on hand.

eClerx Services provides critical business operations services to global Fortune 500 clients. Its consoldiated net profit jumped 39% to Rs 60.99 crore on a 1.2% rise in net sales to Rs 360.79 crore in Q2 FY21 over Q2 FY20.

The scrip surged 4.28% to hit the day's high at Rs 905.40 in early trade today, which is a 52-week high for the counter.

On a year-to-date (YTD) basis, the stock has gained 53.66% while the benchmark S&P BSE Sensex has added 13.77% during the same period.

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