EXL signs eight-year back-office deal with American Express

ExlService Holdings has signed an eight-year agreement to service the back-office operations of American Express Business Travel, while acquiring American Express’ Global Travel Service Center operations in Gurgaon.

Though the company did not disclose the deal size, it expects over $160 million (Rs 752 crore) in revenues. The purchase price for this transaction is approximately $30 million (Rs 141 crore) “net of working capital adjustments”, the company said.

ExlService posted a quarterly profit of $3.9 million (Rs 18.3 crore) for the third quarter ended September 30. It had posted a loss of $1.07 million (Rs 5 crore) in the corresponding quarter last year. Revenue at $48.2 million (Rs 226.5 crore), was up 3.6 per cent year-on-year from $46.5 million (Rs 218.5 crore).

 

The company has increased its calendar year 2009 guidance (expectation) for revenue to $178-180 million (Rs 836.6-846 crore) from $170-175 million (Rs 799-822 crore) and the adjusted operating margin to 13-13.5 per cent from 10-12 per cent.

On a sequential basis, EXL’s net income more than trebled from $1.2 million (Rs 5.6 crore) in the trailing quarter, while its revenue rose 13.9 per cent quarter-on-quarter from $42.3 million (Rs 199 crore) in the previous quarter.