Sykes Enterprises, Inc., a provider of outsourced customer contact management solutions and services, will acquire ICT Group, Inc. ICT Group markets customer management and business process outsourcing solutions.
Under the terms of the agreement, Sykes will pay $15.38 for each share of ICT Group’s common stock, for a total purchase price of approximately $263 million. Each outstanding share of ICTG will be converted into $7.69 in cash and SYKES stock with a value of $7.69. The purchase price represents a premium of approximately 46% over the closing price of ICTG stock on Oct. 5, 2009.
John J. Brennan, ICT Group’s chairman, CEO and president, will remain with Sykes for an unspecified transition period to assist with the integration of the two businesses.
For the six months ended June 30, ICTG's revenue was $194.4 million. ICTG ended the second quarter of 2009 with $42.3 million in cash and cash equivalents on its balance sheet.
The cash portion of the purchase price is anticipated to be funded through committed credit facilities. The Board of Directors of SYKES and ICTG have each approved the transaction, which is subject to the approval of the ICTG shareholders. The transaction is expected to close around the end of 2009.
According to a statement from Sykes, the merger will create a combined company with more than $1.2 billion in revenues, while “greatly expanding the portfolio of clients with minimal client overlap”.
It will also deepen the two companies’ client relationships within the financial services and telecom verticals.
