As the economy strengthens and businesses expand, demand has increased for Business Process Outsourcing (BPO) services. This trend, paired with a lower cost of capital for would-be acquirers has resulted in a spate of transactions in recent weeks.
Accenture (NYSE:ACN) announced on October 3rd that it will acquire Procurian, a leading provider of procurement outsourcing services, for $375 million in cash. Procurian is a specialist in providing comprehensive procurement solutions to large corporate clients from locations in the US, UK, India, the Czech Republic, China and Brazil. Procurian’s revenue was reportedly $142.6 million for the twelve months prior to the deal, indicating that Accenture paid up for the transaction.
The acquisition of Procurian enhances Accenture’s leadership in the procurement outsourcing space – a position that was strengthened in late 2010 when the firm acquired Ariba’s sourcing and BPO services assets for $51 million. Accenture has now announced 13 acquisitions this year.
Pactera Technology International Ltd , the largest technology outsourcing firm in China, announced in mid-October that is has agreed to be taken private by a consortium led by Blackstone Group LP for $625 million. Beijing-based Pactera was itself formed just last year through a merger of HiSoft Technology International Ltd and VanceInfo Technologies Inc. Pactera offers technology outsourcing and consulting services to companies worldwide.
On October 22nd, Progressive Medical and PMSI announced the successful completion of their merger. The combined company will provide best in class pharmacy benefit management, medical equipment services, home health care, transportation, and Medicare compliance solutions for workers’ compensation and automotive accident claimants. Progressive Medical is a leading provider of services associated with workers’ compensation-related medical claims.