MUMBAI, India -- Aegis BPO, part of the Indian business conglomerate Essar Group will buy the Philippines' back-office outsourcing group PeopleSupport Inc. for $12.50 a share in a deal worth $250 million.

Aegis said the transaction would be funded through Essar's existing resources.

Upon completion of the deal, PeopleSupport would be delisted and the new company would be called Aegis PeopleSupport, Aparup Sengupta, global chief executive and managing director of Aegis BPO, said.

Aegis PeopleSupport will become a wholly owned unit of Aegis BPO and the deal is expected to complete in the third or fourth quarter of 2009.

Sengupta said the company's staff numbers would increase to 29,000 from 20,000 at present.

Sengupta said the company generated $200 million sales in the year to March and expected this to rise to about $500 million by end of fiscal 2010, including PeopleSupport's contribution.

The deal will add about $270 million revenues from US clients. At present, Aegis BPO generates about $120 million in the United States.