Friday, eTelecare Global Solutions, Inc. (ETEL), a provider of BPO services, said it signed a definitive agreement to be acquired by affiliates of Ayala Corp. and Providence Equity Partners for US$9.00 per share in cash. The total transaction value is approximately US$290 million.
Under the agreement, affiliates of Ayala Corporation and Providence Equity Partners will commence a tender offer in the Philippines and the United States to acquire all of the outstanding shares of eTelecare common shares, and also all of the outstanding eTelecare American Depositary Shares.
Quezon City, Philippines-based eTelecare, which focuses on the complex, voice and non-voice based segment of customer-care services, noted that the offer price represents an approximate 76% premium over its closing price on Nasdaq on September 18, 2008.
Completion of the tender offer will be subject to the condition that at least 66.67% of eTelecare's shares and American Depositary Shares are tendered in the offer, and other conditions include regulatory approvals. The transaction is not subject to any financing conditions.
The company said that a special committee of its Board of Directors has unanimously recommended the offer to the Board. Additionally, several of eTelecare's shareholders have signed support agreements in favor of the transaction.
ETEL closed Thursday's trading at $5.10, up $0.12 on a volume of about 33 thousand shares.
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