Ayala BPO unit takes in strategic partner

MANILA, Philippines - Ayala-owned Integreon, a knowledge and legal process outsourcing firm, is taking in a strategic partner with the infusion by private equity fund manager Actis of $50 million in capital.

In a press briefing yesterday, Integreon president Erik Tabuena said Actis’ investment will give it a significant minority 30-percent stake in Integreon, equivalent to two seats on the board, and result in the dilution of LiveIt Investment Ltd.’s stake to 56 percent from 86 percent. 

LiveIt is the holding company for the interests of the Ayala Group in the business process outsourcing sector.

“We’re very excited about this development. It gives us resources to pursue our growth and our expansion plan,” said Tabuena.

He said the money will be used by Integreon to expand its range of services and technologies, pursue acquisitions, launch a second delivery center in the Philippines and double its workforce.

The new facility will still be within Metro Manila, Tabuena said, adding that the company is also looking to expand its presence in existing sites abroad.

Tabuena said the company may also make its presence felt in Eastern Europe, which he said could be an attractive site for expansion.

Integreon, the leading global provider of legal support, research and business services to law firms, financial institutions and corporations, employs around 2,000 people and generates approximately $6 million in revenue. Its nearly 2,000 associates deliver services from centers in the US, UK, India, China, South Africa and the Philippines

Fred Ayala, chief executive officer of LiveIt, said: “We are very pleased to bring in Actis as a strong new partner whose proven business building skills and deep knowledge of emerging markets will help us to take Integreon to the next level.”

“Actis’ long-established understanding of emerging markets, along with their experience investing in business services outsourcing, makes them an ideal partner for Integreon, Integreon chief executive officer Liam Brown added.”

With over 100 investment professionals on the ground in nine offices worldwide, Actis identifies investment opportunities in India and the emerging markets by bringing local experts together with specialist sector teams.

Ayala said LiveIt continues to be on the lookout for possible acquisitions. The company’s strategy is to acquire or invest in existing global BPO companies that have the potential to become a global top five leader in their sectors, and can leverage the Philippines. 

Aside from Integreon, LiveIt owns significant shareholdings in Stream Global Services (voice BPO), Affinity Express (graphics and creative services) and HRMall.