BPO not processing: why a deal with Aegis and Startek is keeping Capital Square awake all night

BPO not processing: why a deal with Aegis and Startek is keeping Capital Square awake all night
iStock

Synopsis

Startek has been losing clients and management teams. Last December, PE firm Capital Square Partners offered to take Startek private at a fraction of what it had initially paid for the stock. Last month, it further cut the price because it was struggling to raise the necessary financing. Where does it go from here?

Some matches are made in heaven — popcorn and movies; rainy days and pakodas; bad days and chocolate. In the world of finance, private-equity buyouts and BPOs have been a winning combination. For two decades, private equity companies have made a bundle on buying business-process outsourcers and then selling them. Back in 2002, ChrysCapital made a 6x return on SpectraMind when it sold the company to Wipro. Blackstone made a 200% return the first

To Read the Full Story, Become an ET Prime Member

Access the exclusive Economic Times stories, Editorial and Expert opinion

Monsoon Offer

Get flat 20% off

on ETPrime membership

Membership Benefits

Access the exclusive Economic Times

Stories, Editorial & Expert opinion

Complete Access with ET Prime

Experience your Economic Times newspaper, The way you've always liked!

Get to know where the market gurus invest & grow your portfolio.

Stock Report Plus

In-depth stock analysis for 4000+ companies

Stock Analyzer

Instant stock analysis based on Solvency, Profitability, Growth, Valuation, Momentum, Risk & More.

Now Available with ET Prime

Manage your money efficiently with this weekly guide.

Clean experience

with minimal ads

Easy & distraction-free reading with 90% less ads

Sharp Insight-rich,

In-depth stories across 20+ sectors

1500+ Exclusive stories & analysis across sectors to help you stay informed

Get One Year Times Prime Subscription worth ₹1199 for free

Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-

Enjoy unlimited access to breaking news and thought provoking stories from all around the world.

Get One Year Docubay Subscription worth ₹999 for free

Stream award-winning international documentaries from more than 100 countries.

Offers By Our Partners

Exclusively for ET Prime Members

Members Love Us

The stalwarts of the industry trust ET Prime for insightful analysis & unbiased thought pieces

Gift a story

Your membership includes Story Gifting Credits. Now gift exclusive stories to your friends & peers.

Comment & Engage

with ET Prime community

Communicate & build a connection with great minds of the industry

A trusted team of

Journalists & Analysts

Unbiased perspective & detailed reporting by our team of journalists who have in-depth knowledge and years of experience