TROY, Mich.--(BUSINESS WIRE)--HOV Services, Ltd. (NSE:HOVS) (BSE:HOVS), one of the largest end-to-end BPO companies providing Healthcare, Finance and Accounting, E-Content Management, Presentment and HRO services, announced today that an agreement has been entered into to combine its indirect subsidiary HOV Services LLC (“HOVS”) with SOURCECORP, Inc. (“SOURCECORP”), a portfolio company of Apollo Management V, L.P. (the “Transaction”). SOURCECORP is a Texas-based BPO services and specialty consulting services company. Shareholders of HOVS and SOURCECORP will each control 50% of the combined equity. The Transaction is expected to be completed in the next 45-60 days subject to regulatory approvals and customary closing conditions.

The merger will bring together two highly-recognized companies and create one of the largest business process outsourcing and professional services consulting companies with approximately $481 million in revenue. The company will have a global workforce of more than 14,200 associates serving more than 50% of the Fortune 100^® companies. Clients will benefit from expanded service offerings and increased delivery capabilities with over 80 locations in the U.S., Canada, India, China, Mexico and the Philippines. The company will deliver, in its combination, end-to-end solutions including: document centric applications, workflow management, Finance and Accounting, Publishing, Healthcare, HRO Services, Government solutions and specialized consulting services for construction management, tax benefits, legal claims settlement and legal consulting. The combined company will operate under the name SCH Services, Inc (“SCH Services”).

Suresh Yannamani, President of HOV Services will become President of BPS, Ed Bowman, Chief Executive Officer and President of SOURCECORP, and the management teams of both companies will continue in their key leadership roles and will play critical roles in the future of the combined company.

Commenting on the merger, Suresh Yannamani, President of HOVS, said, "This merger is about two strong companies coming together to create a leading, sustainable platform creating value for all of its collective shareholders. In joining forces, this merger creates a company positioned to be one of the leading global providers of business process solutions and consultancy services in the industry." He added, "The combined company is globally positioned, active on four continents. Its enhanced platform will enable us to collectively better service the needs of our customers and provide them with additional subject matter expertise in Healthcare, Insurance, Banking, Automotive, Retail, Government and Publishing verticals. We are very excited about this combination and look forward to working with Ed Bowman and the entire SOURCECORP team in partnership as one.”

Ed Bowman, CEO and President of SOURCECORP, said, “We are very pleased with this transaction and the new possibilities it provides for growth and expanded services for our customers. The combination opens an avenue to increase our penetration into core industries, expand our global delivery capability, add new products and services and industry expertise, while creating scale that is critical in this industry. We look forward to working with Suresh Yannamani and the entire HOV Services team.”

The Transaction is expected to be completed in the next 45-60 days subject to regulatory approvals and customary closing conditions.

About HOV Services

HOV Services, LLC (the “company” or “HOVS”), a portfolio company of HandsOn Ventures, LLC, one of the largest end-to-end BPO Companies, provides healthcare, finance and accounting, e-content, HRO, document management and business intelligence services across key industries such as BFSI, Healthcare, Government, Telecom, Publishing, Retail, Commercial and Industrial Manufacturing. HOVS’ RightShore delivery centers are strategically located in India, North America, China and Mexico with over 8,700 associates and over 46 delivery centers servicing over 50% of the FORTUNE 100^®and some of the other largest companies in the industries served.

About SOURCECORP

SOURCECORP, a portfolio company of Apollo Management V, L.P., provides business process outsourcing solutions and specialized high-value consulting services to clients throughout the U.S. SOURCECORP focuses on business processes in information-intensive industries including commercial, financial, government, healthcare, and legal. Headquartered in Dallas, the Company serves clients throughout the United States through a network of locations in the U.S., Mexico, India and the Philippines.

FORWARD-LOOKING STATEMENT

The statements in this press release that are not historical fact are forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from such forward-looking statements. The aforementioned risks and uncertainties include, without limitation, the risks and uncertainties relating to the timing and certainty of the closing of the transaction and the risks of achieving a successful integration of the two organizations. The Company disclaims any obligation to update any forward-looking statements- whether as a result of new information, future events or otherwise, except as required by law.

Contacts