Home »Business and Economy » Pakistan » TRG requires another service provider in US

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  • Jan 27th, 2004
  • Comments Off on TRG requires another service provider in US
The Resource Group (TRG), the largest IT-enabled services company in Pakistan, has concluded acquisition of AnswerXact, New York, which is a US provider of telephone answering services located in New Rochelle, New York.

TRG has made this acquisition through equity investment in its existing portfolio company, Central Voice, LLC (also located in the Greater New York), which is the entity which in turn has acquired all assets of AnswerXact.

The AnswerXact transaction represents TRG's fourth acquisition in the US call centre services industry, according to a letter written to Karachi Stock Exchange.

With AnswerXact acquisition, the revenue of TRG portfolio company, Central Voice.

LLC, has increased by about 30 percent, to approximately $ 3 million, and its total employee base to about 100 employees. Central Voice expects to realise significant synergies from the AnswerXact acquisition by consolidating AnswerXact centre in New Rochelle with one of its three facilities located less than five miles away.

Through this acquisition, Central Voice will further enhance its position as a leading provider of telephone answering service in the eastern sea-board region.

TRG employs innovative business model, which consists of taking controlling stakes in US call centre companies and its offshore facility in Pakistan.

It currently employs nearly 150 people at its 10,000 square-feet facility in Lahore.

"The AnswerXact transaction illustrates the flexibility and robustness of the TRG business model," said Zia Chishti, chief executive officer of TRG. "This is our first acquisition that has been channelled through a portfolio company and recognises the increasing options available to us as we grow the TRG family."

TRG is listed on KSE, having raised a total of Rs 600 million in an initial public offering in May, 2003, and is in the process of issuing a 2 for 1 right issue of Rs 1,440 million.

The proceeds of these funds are being utilised towards acquisition of US call center companies as well as to build an infrastructure in Pakistan.

Copyright Business Recorder, 2004


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