The resulting 1.2 billion-dollar Alorica is now one of the industry’s largest brands, offering expanded capabilities, service offerings and delivery options
Irvine, Calif (January 9, 2015)
Alorica, a worldwide leading provider of customer management outsourcing solutions, today announced it has signed an agreement to acquire several of West Corporation’s (NASDAQ: WSTC) agent services businesses for a consideration of $275 million. In 2014, these businesses represented approximately $580 million in revenue. The acquisition broadens Alorica’s product offerings and market reach, enhances the company’s delivery capabilities and allows Alorica to continue its sustained, aggressive growth on a global scale. Now one of the largest US based Business Process Outsourcing (BPO) providers, the new, integrated Alorica projects $1.2 billion in revenue in 2015.
“West, is one of the pioneers and most successful players in the BPO industry,” said Andy Lee, CEO, Alorica. “Today’s acquisition strengthens Alorica’s market position, allows us to scale faster and expands our reach into new vertical markets. By combining the strengths of both companies, we will be able to deliver immediate value to our customers.”
West’s agent services businesses provide large-scale customer contact solutions to a wide range of vertical markets. The strategic acquisition strengthens Alorica’s market position in three key areas:
- Global footprint: Increases company’s geographical presence in the US, Latin America and the Philippines, while adding a market-leading work-at-home capability
- Markets: Enters Alorica into new markets, including healthcare, utilities and government, while strengthening Alorica’s position in communications, retail, travel, financial services and consumer products
- Services: Expands current services offerings in customer care, technical support and sales, and adds receivables management and direct response capabilities
The integration of West’s agent services businesses’ workforce will add an additional 1,500 nearshore employees (Jamaica and Mexico), 5,400 offshore employees (Philippines) and 18,400 domestic employees, bringing Alorica’s employee headcount to 48,000 employees. Over 5,000 of the 18,400 domestic employees work as part of the award-winning West at Home service. As a developer of one of the first work-at-home solutions, West utilizes state-of-the-art technology and a proprietary work force management system, Spectrum™, which will become a core component of Alorica’s work-at-home service offering.
“Alorica and West share a passion and track record for excellent performance and possess unparalleled industry knowledge,” continued Lee. “This acquisition is the next step in our strategic vision to grow Alorica to become the number one BPO provider in our addressable markets.”
“Alorica is committed to supporting West agent services customers and employees going forward,” said Tom Barker, chairman and CEO, West Corporation. “Our company cultures and technologies are complementary, and we will work closely together to ensure a smooth transition.”
Bank of America Merrill Lynch, Wells Fargo Bank and Bank of the West provided committed financing to complete the transaction. Wells Fargo Securities acted as exclusive financial advisor to Alorica. McGuire Woods LLP acted as legal counsel to Alorica. For more information on Alorica and today’s announcement, please visit: http://bit.ly/1tKJ6C0.
Alorica is a worldwide leading provider of customer management outsourcing solutions spanning the entire customer lifecycle. From customer acquisition and sales, to customer care and support, to logistics and fulfillment, Alorica offers a seamless customer experience across all service channels. Alorica’s award-winning Business Process Outsourcing services span both the Business-to-Consumer (B2C) and Business-to-Business (B2B) sectors across all industries for Fortune 1000 companies. Headquartered in Irvine, Calif. with more than 48,000 employees in 40 domestic, near shore, and offshore customer management centers, Alorica offers the proven industry experience and know-how to provide a total customer management solution. For more information, please visit www.alorica.com.
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