Startek to acquire 26% stake in CSS Corp for $30 million

▤ Summary

NYSE-listed BPM firm Startek which had merged its business with Indian BPO firmhas invested $30 million in IT services firm CSS Corp in a limited partnership managed by Startek’s majority shareholder, Capital Square Partners.Startek will acquire 26% indirect beneficial interest in CSS. The company however said in a statement that the option to acquire majority stake was at its discretion and that Startek is not obliged to do so.The acquisition was funded by a newly secured $185 million senior debt facility from CSP Alpha Holdings, which is a wholly owned unit of Startek. The total debt refinancing consists of a $165 million term loan and a $20 million revolving credit facility.Aparup Sengupta, Executive Chairman and Global CEO of Startek said that the acquisition will add to the company’s digital capabilities.“Our investment in CSS accelerates our digitization initiatives and marks an important inflection point for Startek.”He added, “CSS is a robust IT services company providing mission-critical AI, automation, analytics, cloud and digital solutions to a growing technology customer base across five continents. Given the success of our Startek Cloud omnichannel platform in 2020, we continue to view our digital services as a key long-term driver of both future revenue growth and margin expansion. On a constant currency basis, net revenue increased 4.7%.Sengupta said, “While the fourth quarter is historically our strongest quarter of the year, we further benefitted from seasonality trends within our existing client base, including robust e-commerce tailwinds around the holiday season.”

▦ Linked Companies

CSS Corp

$100M to $250M