Ayala Corp. yesterday reported its business
process outsourcing (BPO) unit, Livelt Solutions Inc., had
acquired 100 percent of US-based outsourcing firm Affinity
Express Inc. for P1.4 billion ($28.6 million).
Affinity then plans to set up a second call
center in Asia in the Philippines. The center will employ 200 to
300 workers and will start operations by the second quarter of
the year.
To date, Ayala has invested over P3 billion
expanding into business process outsourcing.
The fresh deal marks the continuing growth in
outsourcing in the Philippines, as companies around the world
tap a low-cost, English-speaking workforce to do their
back-office work for them.
Earlier in October, Ayala said LiveIt took
control of a New-York based non-voice outsourcing services firm
for $18 million.
Affinity is a Delaware-incorporated company
providing graphics services in many US-based businesses like the
Los Angeles Times, direct mailing company ADVO, quick printing
company Staples and OfficeMax and others.
LiveIt chief executive officer Alfredo I.
Ayala the company was bought in partnership with Affinity’s
existing management team.
LiveIt bought the shares from investment
funds Flagship Venture, Hercules Technology Growth Capital,
Inc., Ticonderoga Capital and Coop Securities LLC, for $21
million, and infused an additional $7 million as fresh capital.
Ayala will be the Affinity after the buy-in.
Last October, LiveIt bought Integreon Managed
Solutions, for P900 million, which is a leading knowledge
process outsourcing (KPO), legal process outsourcing (LPO)
provider and document process outsourcing (DPO) provider
internationally.
Prior to this, LiveIt has also bought into
call center e-telecare at P800 million.
"We are pleased to be investing in an
industry leading innovator like Affinity Express and are
delighted that the entire management team, which led the company
to over 40 growth revenue this year, will remain with the
company. With our investment, we believe that the company now
has the optimal combination of people, expertise, market
traction and capital that will enable it to continue to set the
pace for the global outsourced graphics and design services
industry," said Ayala.
James, R. Daleen, Affinity Express CEO said
the fresh infusion by LiveIt will be used "to expand the
company’s operations, accelerate technology deployment and
support the international expansion."
Affinity employs over 800 individuals
globally. It has its project and implementation team in Texas,
Ohio, Florida, Connecticut and New Yorl, and has a large
production center in Pune, India. This year, the company looks
to set up its second center in the Philippines, employing
between 200 to 300 individuals, said Ayala.
Target date for the operation of the second
Affinity Express center is set at second quarter of this year.
Ayala said the management team of Affinity Express is set to
stay for two weeks in the country to look up for the suitable
place to put up their office.
"We are particularly looking forward to
helping the company expand its delivery footprint to the
Philippines, where it will be able to tap a large and high
caliber pool of artistic and creative talent with excellent
communications skill. We are in the process of selecting our
first site in Metro-Manila and recruiting the senior leadership
team for the Philippines," said Ayala.
The acquisition of Affinity puts LiveIt’s
cumulative investment in the BPO sector at P3.1 billion,
approximately $62 million. Ayala Corp. CEO Jaime Agusto Zobel de
Ayala (JAZA) said this investment is further enhanced by the
increased participation by Ayala Corp.’s units Globe Telecom and
Ayala Land, Inc. in the BPO sector.
"Ayala Land has developed several of the
country’s first office buildings specifically designed for BPO
operations, for leading BPO companies such as Convergy’s,
PeopleSupport, and Infonxx. It is also currently constructing a
build-to-suit facility for HSBC at the Bonifacio Global City and
is embarking on the development of the UP -North Science &
Technology Park. Combined these projects value of over P2.6
billion. In addition, Ayala Land is developing 20 hectare in
Canlubang for a BPO park, and recently announced a joint venture
with Goldman Sachs and Capmark to develop a 457,000 square mtere
BPO comlex in Makati," said Ayala.
