HOV Services to take Control of Tracmail & SAM Holdings

HOV Services Ltd has announced that the Company will take control of TRAC Holdings, LLC (Tracmail) and SAM Holdings, LLC ("SAM" or "Superior Asset Management") and invest $3.74 mn to acquire its 30% interest in Tracmail and SAM. The two Companies combined are expected to deliver in excess of $17 million (over Rs 75 crores) profitable revenues for FY' 08.

Recently, US-based private equity fund manager, HandsOn Ventures, LLC, acquired a 100% stake in premier Business Process Outsourcing (BPO) Companies - Tracmail and Superior Asset Management Inc through its acquisition fund, Rustic Canyon, LLC ("Rustic"). The Company will acquire its 30% interest at cost from Rustic, paying a total of US $3.74 million (about Rs 17 crores). The Company has taken control and will manage the acquired Companies; also the Company has an option to purchase the remaining 70% that it does not own.

Tracmail pioneered the Accounts Receivables Management vertical in India since inception in 1999. Tracmail services some of the largest Companies in the world from its headquarters in Vashi. The current employee strength of more than 450 employees most of whom are located in Vashi in a 67,000 square feet office will be further increased up to 1100 employees under the Company to support growth of both Companies.

SAM ranks in the top category by many of its of US clients that include major banks and telecom Companies with many years of successful ARM services. SAM Headquartered in Atlanta, Georgia, USA since inception continues to provide clients with cost-effective, flexible, scalable solutions helping clients leverage, the power of outsourcing year over year with a expanded global footprint with The Company and TRAC.

The Company had planned to augment its current employee strength of 850 by building capacity in the US and Pune for providing facilities for additional 1500 employees. The two acquisitions provide not just the needed capacity, but also bring additional customers, some of them Fortune ® 100 Companies. Further broadening the BPO service offerings and customers, the Company is able to provide its customers a robust, secure, redundant network and multiple locations in the US as well as in India to meet their global diversified BPO needs.

"The new acquisitions are in line with our vision of continuing our expansion into the financial services BPO space, building a secure global footprint to meet and exceed expectations of our customers. We are on track with our growth plans and with the acquisition of SAM and TRAC at the same cost as Rustic Canyon, we further derive benefits for our shareholders. We will manage the business going forward and plan to go in for the remaining 70% as and when we are ready," said Mr. Sunil Rajadhyaksha, Executive Director of the Company.

Source : Equity Bulls

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