Ayala BPO unit buys UK-based LBM HoldingsBy Doris C. Dumlao |Philippine Daily Inquirer
MANILA, Philippines—The Ayala group’s business process outsourcing (BPO) unit has acquired UK-based LBM Holdings Ltd., allowing the group to make further inroads into the United Kingdom, the world’s second-largest English language market.
In a statement on Monday, Ayala Corp. announced that the acquisition was made by Stream Global Services Inc., an investee company of the conglomerate’s BPO investment arm, LiveIT Investments Ltd.
Stream pioneered the call center industry in the country when it took the first calls from the US market in mid-2000, the statement said.
LBM is a premier demand and lead generation solutions provider that employs about 2,500 people across six locations in the UK and generates approximately £60 million in annual revenues.
Its clients are in the telecommunications, financial services, utilities, automotive and retail industries.
“We are very pleased with Stream’s entry into the UK market, its strong financial results globally, its continued growth in the Philippines, and its recognition by the industry as an employer of choice,” said Fred Ayala, LiveIt’s CEO and Stream’s vice chairman.
The Ayala group sees LBM enabling Stream to better penetrate the UK as well as strengthen its ability to help customers grow their sales through LBM’s revenue generation service offerings.
“This transaction is about delivering greater value to our clients and long-term growth for our company,” said Stream chairperson and chief executive officer Kathy Marinello. “LBM has proven experience in creating highly precise target lists of people who will be more inclined to buy products and services, which will further enhance our StreamSELLER offering.”
“StreamSELLER focuses on everything involved with the sales process, from recruiting, hiring and training the right people to the consistent use of proven sales behaviors that close more sales with greater predictability. LBM’s people, expertise and capabilities, combined with Stream’s financial strength, global presence, and sales and service offerings, will establish a broader portfolio of high-value service offerings for our clients,” Marinello said.
Stream is a leading customer relationship management BPO company with over 39,000 employees supporting 35 languages across 56 service centers in 23 countries. The company booked revenues of $860 million in 2012 and grew its adjusted cash flow by 14 percent to $101 million.
In the fourth quarter of 2012, revenue was up by 7 percent year on year to $236 million. Adjusted cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) stood at $34 million, up by 10 percent and representing the 8th straight quarter of year over year growth in adjusted Ebitda. Net income for the fourth quarter of 2012 was $4 million.
The Ayala statement noted that Stream had also achieved “strong momentum” in the Philippines where over the last three years it has grown its headcount to more than 14,000. In recent months, Stream opened three new sites in Pasay, Makati and Cebu.
Originally posted: 5:33 pm | Monday, April 22nd, 2013