PE-backed Probe BPO acquiring PH-based MicroSourcing for $69m

Photo from MicroSourcing's website.

Probe BPO Holdings, a business process outsourcing firm part-owned by Sydney-based private equity firm Five V Capital, is acquiring Filipino managed services agency MicroSourcing for A$100 million ($69 million).

In a disclosure, ASX-listed marketing services group Salmat, which owns MicroSourcing, said it has agreed to sell the business to Probe BPO, the market-leading privately-owned Australasian BPO provider, through a share sale.

It is not the first deal involving Salmat and Probe. In 2018, Salmat sold its contact centre business to Probe for A$53 million ($36 million), highlighting the consolidation trends in Australia’s BPO market.

“New capital partners should enable MicroSourcing to invest in additional growth and the completion of this transaction will return funds to Salmat,” said Salmat CEO Rebecca Lowde.

MicroSourcing provides a range of offshore outsourced business solutions including contact centre services, back-office processes, digital creative and development services, which are offered via a range of service delivery models.

Salmat first acquired 50 per cent of MicroSourcing in 2013 and the remaining 50 per cent in 2016 for  $31 million.

The company’s 2019 annual report shows that MicroSourcing’s revenues improved, bringing in A$87.8m in 2019, up from the A$72.8 million in 2018.

The sale completion is expected to take place by the end of February 2020.

The acquisition will give Probe BPO an exposure to the bustling outsourcing industry in the Philippines, the fastest growing industry in the country today. A total of 851 BPO companies employing around 1.2 million people are registered in the Philippines.

The Philippine central bank estimates that earnings from BPO services went up by 6 per cent to $16.4 billion from January to September 2019.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.