HGS to sell India domestic CRM biz to Altruist India for Rs 40 cr

Hinduja Global Solutions (HGS) on Thursday said it has entered into a definitive agreement to sell its India domestic customer relationship management (CRM) business to Altruist India for Rs 40 crore.

"HGS intends to consolidate their product offerings and focus on high-margin/premium services...The amount of cash consideration for the transfer shall be approximately Rs 40 crores, subject to adjustments as amount or otherwise share per the definitive agreement," a BSE filing said.

In addition, the proceeds from working capital will accrue to HGS, it added.

The transaction is expected to close by January 31, 2020 and is subject to necessary approvals.

The CRM business primarily comprises voice-based contact centre services and some non-voice services to domestic customers, HGS said.

The business is operated as a division of the company and will be sold under a slump sale transaction, it added.

In a separate statement, HGS said it will transfer client contracts and assets at 10 delivery centers across Bengaluru, Mysore, Hyderabad, Pune, Mumbai, Noida, Indore and Raipur post completion of the transaction.

"Over 7,300 employees will move to Altruist as part of the agreement," it added.

Revenue from this business was around Rs 346 crore in 2018-19 financial year and accounted for 7 per cent of the consolidated revenue.

For the six months ended September 2019, revenue from this business was around Rs 145 crore.

The business had a net worth of Rs 124 crore as on March 31, 2019.

"HGS will continue to focus on strengthening its international business that supports global clients out of India, HGS Business Services (comprising HRO, Compliance, Payroll and F&A Services) and HGS Interactive businesses," the statement said.

Altruist, based out of Panchkula in Haryana, operates BPO units across the country. It has grown significantly in the last 10 years through 16 acquisitions.

Altruist Technologies, which operates in the voice-based BPO business and services Indian domestic customers in telecom, software and revenue assurance, had a consolidated revenue of Rs 425 crore in 2018-19, the filing said.

Edelweiss Financial Services Limited acted as the sole financial advisor to HGS on the transaction.