ICICI OneSource has set its eyes on the Bangalore-based business process outsourcing company First Ring, jointly promoted by the West Bridge Capital Partners, Silicon Valley entrepreneur CEO and founder of Net Continuum Ravi Sethi and the Hero Group.
Industry sources revealed that ICICI OneSource was the highest bidder for the cash-stock deal worth roughly around $14 million.
The move comes after one year of ICICI OneSource entering the BPO space with the acquisition of CustomerAsset.
First Ring's spokesperson denied comments on the issue. First Ring is a call centre and BPO player with 79 per cent of its revenues coming from the financial services front.
"As we grow, acquisition is one of the strategies for ICICI OneSource, though at this point of time we have no comments to offer on any proposed acquisition," said K Ganesh, president, contact centre business, ICICI OneSource.
A senior official at WestBridge Capital Partners said: "I cannot give any comment on this issue."
However, according to sources, while West Bridge would hold back its stake in the company, the other promoters are planing to exit.
WestBridge Capital holds about $7.3 million in First Ring. Hero Group officials could not be contacted.
24/7 Customer Service, one of the other leading BPO companies in Bangalore is also understood to have bid for First Ring.
P V Kannan, founder and CEO, 24/7Customer, said, "We cannot comment on First Ring specifically. We are aggressively looking at acquisitions and have retained an external firm to help with acquisitions."
Target companies are in Bangalore, New Delhi and Chennai which generate at least $1 million revenue per quarter and have direct Fortune 500 customer relationships and core process knowledge, he added.
FirstRing commenced operations in November 1999.
Besides establishing footholds in the healthcare, insurance, financial services and consumer goods verticals, FirstRing is extending its focus to many BPO opportunities that have emerged from the existing clients, as well as from new clients seeking the Indian market.
FirstRing's investors include WestBridge Capital Partners, Ravi Sethi (Silicon Valley Entrepreneur) and Hero Group of Companies.
FirstRing has over 1,000 employees spread across India and the US and has a run rate of $1.2 million in monthly revenues.
FirstRing services include voice, e-mail and data processing comprising inbound and outbound telemarketing, technical help desk services and back office operations to leading clients in the US.
The company's clientele include Fortune 100 and Fortune 50 credit card companies and a leading hotel chain among others.
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