Japanese Business Process Outsourcing (BPO) firm Outsourcing Inc. has announced the acquisition of German staffing company Orizon Holding for an estimated €81.6 million (about US$ 85.2 million).
Outsourcing has acquired the full stake of the business through the Japanese group’s German subsidiary OSI Holding in a move to safeguard its business operations amid a highly unpredictable and volatile market.
The closing of the transaction is expected to occur by June 30, 2017. This deal will also see an exit for private equity firm Silverfleet Capital Partners after almost ten years in portfolio.
The acquisition of Orizon Holding is part of Outsourcing’s latest plan – VISION 2020: Tackling New Frontiers, in which the Tokyo-headquartered firm aims to grow in the direction of Lehman-class environmental change.
However, the BPO firm also noted that it has been conventionally engaged in manufacturing outsourcing business and confronted volatility risks since the collapse of Lehman Bros in 2008.
Thus, with this acquisition, Outsourcing Inc. can leverage on the strategic location of Germany, one of Europe’s leading industrialized countries for the overseas expansion of their manufacturing businesses.
Besides, Orizon Holding is also the eight largest staffing company in Germany with its strengths in mechanical engineering, aviation, and medical sectors.
“Orizon surpasses its peers in profitability and is expected to achieve ongoing growth,” Outsourcing Holdings said in a statement.”This transaction will provide the group with a strong foothold to develop into the European industrial nations, including those in Eastern Europe.”
The company has kickstarted some medium-term management initiatives to scale globally into the sectors with less susceptibility of fluctuations.
The plans call for outsourcing business to convenience stores industry and the U.S. military bases in Japan, while undertaking the public services contracted to the private sectors in Australia and the UK.
In August 2016, Outsourcing Inc. has earlier strengthen its Europe footprint by acquiring British BPO business Liberata for 43 million pounds (about US$ 53.4 million).
By Vivian Foo, Unicorn Media
This news is published on Reuters.