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

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

Press Trust of India  |  New Delhi 

HGS

Ltd (HGSL) on Thursday said it has entered into a definitive agreement to sell its India customer relationship management business to Altruist India for Rs 40 crore.

"HGSL 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 comprised 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.

Revenue from this business was around Rs 346 crore in FY2019 and accounted for 7 per cent of the consolidated revenue.

The business had a net worth of Rs 124 crore as on March 31, 2019. For the six months ended September 2019, revenue from this business was around Rs 145 crore.

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 FY2019, the filing said.

First Published: Thu, November 28 2019. 19:05 IST
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