PLDT finalizing buyout of SPI, plans further BPO acquisitions

By Mary Ann Ll. Reyes
The Philippine Star 06/15/2006

The Philippine Long Distance Telephone Co. (PLDT) plans to further expand its presence in the local business process outsourcing (BPO) industry with the acquisition of smaller players.

PLDT, through its information and communications technology ePLDT, is finalizing the full acquisition of SPI Technologies, the second largest pure-play BPO company and the ninth largest independent BPO service provider worldwide.  The acquisition of SPI, together with ePLDT’s existing Ventus call center group, is envisioned to solidify ePLDT’s position as one of the largest full service BPO companies in the industry. 

PLDT chairman Manuel V. Pangilinan said ePLDT has lined up one or two more acquisitions at the SPI level. "They need to bulk up their BPO business. The industry is consolidating. The growth will be more on the verticals. There are various consolidation possibilities," he said.

He said the recent acquisitions of ePLDT should strengthen the group’s ability to explore growth opportunities going forward while sustaining its commitment to expand our broadband business, extend its leadership in cellular and increase dividends to our shareholders.

"There is still much to be done but the group is working relentlessly to putting the pieces together in order to capitalize on new sources of growth," Pangilinan added. 

PLDT president and CEO Napoleon Nazareno said the addition of SPI into ePLDT will broaden the group’s participation in the promising BPO sector which industry analysts forecast to grow at a compounded annual growth rate of 9.2 percent in the next four years. "As the Philippines continues to gain recognition as a preferred location for BPO services, the PLDT Group remains in the forefront as a partner in further developing this market in the years ahead," he added.

SPI operates in 23 locations spanning North America, Europe and Asia, servicing over 150 customers including many Fortune 500 companies. With over 6,500 employees worldwide, SPI services these customers onsite, and from facilities in the Philippines, India, US, China (25 percent ownership) and Vietnam (outsourced).

SPI’s core capabilities include content editorial and production, litigation support coding and electronic data discovery, medical transcription, database structuring and management and transaction processing.

Upon completion of the acquisition, ePLDT will become one of the largest BPO service providers in the Philippines and one of the largest BPO firms worldwide, offering a wide range of voice and non-voice services.

"The operational synergies between SPI and the ePLDT Ventus Group will provide us with excellent opportunities to enhance our North American customer base, broaden our revenue streams, as well as derive potential cost synergies in the marketing and selling of our voice-based services in the countries where SPI operates," according to ePLDT president Ray Espinosa. 

Company officials said the acquisition of SPI will enable the ePLDT Ventus Group to immediately enter numerous large, high growth markets and create an instant marketing presence in North America, Europe and Asia.

 

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