|
Gurgaon based Quatrro BPO Solutions has bought out the captive accounting unit of RSM McGladrey, one of the top five global tax and accounting firms with revenues of over USD1.1 billion. Raman Roy promoted Quatrro BPO will merge the acquired entity with its own accounting business and post acquisition the BPO company will have over 2,000 customers globally.
Postacquisition, about 500600 staff of RSM McGladrey of which 200 are in the US, will move to Quatrro. The Indian BPO company will also get McGladreys accounting technology platform and top leadership. Cesar Soranio, head of the finance process outsourcing unit of RSM McGladery, will now head Quatrros finance and accounts practice. This acquisition gives Quatrro the distinct advantage of offering accounting services to the midmarket segment. The only other player globally in the space, Savista, was earlier acquired by Accenture.
Raman Roy, chairman and managing director of Quatrro BPO has confirmed the deal. Market sources say that the BPO company has bought out the USD18 million captive accounting unit for about USD45 to 50 million.
On the acquisition, Mr Roy said, Its a structured transaction and will help Indian outsourcing become more dominant in the midmarket segment. We will merge our technology platform with RSM McGladreys and offer both technology and services to our clients.
RSM McGladreys captive accounting unit caters to accounting, tax, consulting requirements of the midmarket segments which includes law firms, hospitality players, food chains, auto ancilliaries, stores, NGOs and others. Quatrro, plans to grow the 200 people RSM Gladrey team in the US, rather than shift some of the operations to India. We plan to grow the business significantly and there is no move to reduce the numbers in the US, said Mr Roy.
The market for midsized BPO service offerings stands at about USD20 billion and should grow to more than USD25 million by 2009.
On how the acquisition will help in the long term, Quatrro BPO executive VP, new products, Srinivas R Pingali said, Once we have access to the over 2000 customers of RSM McGladery we will leverage the relationship to offer other services like legal, market research, technology and publishing.’ The acquisition will also help add two new centres for Quatrro BPO in the US.
Quatrro now has a presence in India, Sri Lanka, China and the US. This is the companys sixth transaction. The other five include Flextronics BPO, Anik Technologies, Auxicogent, the BPO division of John Keells, a shipping and port’s company, Scope eKnowledge and PFG a USbased mortgage player.
|