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.