Contact Center operator Startek announced on Wednesday that its subsidiary ESM Holdings Limited has entered into a definitive share purchase agreement with Arabian Internet and Communications Services Company to divest its stake in Contact Center Company (CCC) to the Arabian concern. The agreement is subject to customary closing conditions, third-party consents and regulatory approvals, including consents required under the Startek secured revolving credit facility and senior term loan facility agreement.
Established in 2011 as a joint venture between Startek and Saudi Telecom Company (STC), CCC has become a significant provider of customer experience solutions to enterprises in the Kingdom of Saudi Arabia (KSA). Recently, Frost & Sullivan recognized CCC as 2022 Saudi Arabia Company of the Year Award and Market Leadership Award in the Contact Center Services industry.
Startek owns 51 percent ownership interest in CCC with the remaining 49 percent ownership interest held by STC. Pursuant to a share purchase agreement with the Saudi concern, Startek and STC will divest their respective ownership interest in CCC at an enterprise value of SAR 450 million, subject to debt-like and working capital adjustments. At prevailing exchange rates, this values the Startek stake at $61.2 million USD subject to closing adjustments and capital gains taxes. Startek says it anticipates using the net proceeds from the transaction to pay down amounts outstanding under its secured revolving credit facility and senior term loan facility agreement.
“The journey with CCC has been highly successful and I am grateful to all the associates who have made this possible. I am confident of their continued success under the ownership of Solutions,” said Startek’s CEO Bharat Rao. “The divestment of CCC will support the Startek business as we deleverage the balance sheet and prioritize growing our core business.”
Startek says the transaction is expected to be completed during the second quarter of 2023.