March 14, 2011
DALLAS (March 14, 2011) – SOURCECORP, Incorporated ("SOURCECORP" or the "Company") announced today that it has entered into a definitive agreement to merge with HOV Services, a leading end-to-end business process outsourcing company. Shareholders of HOVS and SOURCECORP will each control and receive 50% ownership of the combined company.
The combined entity will be one of the largest pure play BPO and consulting companies in the market with approximately $480 million in revenue. The company will have a global workforce of more than 14,200 associates serving more than 50% of the Fortune 100® companies. Clients will benefit from expanded service offerings and increased delivery capabilities with over 80 locations in the U.S., Canada, India, China, Mexico and the Philippines. The company will deliver, in its combination, end-to-end solutions including document centric applications, workflow management, Finance and Accounting, Publishing, Healthcare, Financial and HRO Services, Government solutions and specialized consulting services for construction management, tax benefits, legal claims settlement and legal consulting.
Ed Bowman, Chief Executive Officer and President of SOURCECORP will remain Chief Executive Officer and President of the combined Company, Suresh Yannamani, President of HOV Services will become President of BPS, and the management teams of both companies continue in key leadership roles and will play critical roles in the future of the combined company.
Ed Bowman, CEO and President of SOURCECORP, said, "We are very pleased with this transaction and the new possibilities it provides for growth and expanded services for our customers. We deepen our penetration into core industries, expand our global delivery capability, add new products, services and industry expertise; and create scale that is important in this industry. We look forward to working with Suresh Yannamani and the entire HOV Services team."
"In joining forces, this merger creates a company positioned to be one of the leading global providers of business process solutions and consultancy services in the industry," said Suresh Yannamani, President of HOV Services. "The combined company is globally positioned, active on four continents. Its enhanced platform will enable us to collectively better service the needs of our customers and provide them with additional subject matter expertise. We are very excited about this combination and look forward to working with Ed Bowman and the entire SOURCECORP team in partnership as one."
Completion of the transaction is subject to customary closing conditions including expiration of the antitrust waiting period. The transaction is currently expected to close in the next 45 to 60 days.
SOURCECORP, a portfolio company of Apollo Management V, L.P., provides business process outsourcing solutions and specialized high value consulting services to clients throughout the U.S. SOURCECORP focuses on business processes in information-intensive industries including commercial, financial, government, healthcare, and legal. Headquartered in Dallas, the Company serves clients throughout the United States through a network of locations in the U.S., Mexico, India and the Philippines.
About HOV Services
HOV Services, LLC (the "company" or "HOVS"), one of the largest end-to-end BPO Company, provides healthcare, finance and accounting, e-content, HRO, document management and business intelligence services across key industries such as BFSI, Healthcare, Government, Telecom, Publishing, Retail, Commercial and Industrial Manufacturing. HOVS' RightShore delivery centers are strategically located in India, North America, China and Mexico with over 8,700 associates with over 46 delivery centers servicing over 50% of the FORTUNE 100® and some of the other largest companies in the industries served.
FORWARD LOOKING STATEMENT
The statements in this press release that are not historical fact are forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from such forward-looking statements. The aforementioned risks and uncertainties include, without limitation, the risks and uncertainties relating to the timing and certainty of the closing of the transaction and the risks of achieving a successful integration of the two organizations. The Company disclaims any obligation to update any forward-looking statements- whether as a result of new information, future events or otherwise, except as required by law.
Media Contact: Charles S. Gilbert, SVP & General Counsel, +1-214-740-6598, for SOURCECORP, Incorporated