Sutherland Global about to acquire Adventity: Report

Leading multinational ITeS and BPO services vendor Sutherland Global Services is getting ready to acquire Adventity Inc., a financial research and analytics firm, providing an exit route to investors like CIBC and DA Capital from the firm. Several experts who are acquainted with the latest developments in this regard said that the transaction is likely to be made public this week. In fact, the imminent deal is the most recent sign of transaction activity in the middle-level BPO space that may also be swallow up the some of the relatively larger firms in the sector in due course.

Established with angel funding some seven years back, Adventity currently employees 4,000 people based at its delivery centers in Mumbai, Chennai, Dubai and Houston. The firm offers analytical research services to a segment of investment banks, private equity firms and hedge funds on the Wall Street and back-office support to the travel industry. Quoting sources, a website reports that annual revenues of the firm are estimated to be in the region of $30 million. However, it is said that Adventity suffered impediments in the last fiscal year owing to loss of a number of top banking customers – one of them being Lehman Brothers.

Acquiring Adventity would enable Sutherland Global to augment its client as well as services portfolio, especially in the banking and financial services and airlines sectors. In addition, the efficient management team of Adventity is expected to provide Sutherland Global with a strategic boost. It may be mentioned here that Sutherland Global employees more than 24,00o personnel based at its different centers in India, the Philippines, Canada, Mexicao, Bulgaria and Nicaragua and is supported by private equity funds from Oak and Standard Chartered

Meanwhile, the website quotes Adventity Inc. CEO Niket Patankar saying that the company’s policy did not permit him to comment on market rumors. Even Sutherland Global is yet to confirm the imminent deal, which is estimated to be to the tune of $40-$45 million. Even the private equity investors backing Adventity are yet to confirm the news.