Firstsource Solutions shares gain 3% after arm buys Ascensos for GBP 42 mn

The surge in Firstsource Solutions share price came after the company announced that Firstsource Solutions UK Limited, a wholly-owned subsidiary of the company, has acquired Ascensos for 42 mn pounds

Firstsource Solutions shares rise: Shares of Firstsource Solutions surged up to 3.04 per cent to hit an intraday high of Rs 324.45 per share on Tuesday, September 24, 2024. 

The surge in Firstsource Solutions share price came after the company announced that Firstsource Solutions UK Limited, a wholly-owned subsidiary of the company, has acquired  Ascensos for 42 million pounds.

In an exchange filing, Firstsource Solutions said, “We wish to inform that, Firstsource Solutions UK Limited (“FSL UK”), wholly owned subsidiary of Firstsource Solutions Limited (“Company”), has executed a share purchase agreement (“SPA”) with the Shareholders of Ascensos Limited, UK (“Ascensos”) for acquisition of 100 per cent ownership in Ascensos for a consideration of GBP 42 million, including upfront payment & earnouts and subject to terms set out in the SPA.” 

 

Ascensos is a leading global provider of customer experience management solutions, dedicated to helping brands deliver exceptional customer service and engagement. 

“This acquisition is aligned with the strategic capabilities Firstsource has been pursuing toward growth and expansion. We’re thrilled about the potential that Ascensos’s extensive retail knowledge, Firstsource’s advanced technology, and the RPSG Group’s deep expertise bring together,” said Sanjiv Goenka, chairman - RPSG Group and Firstsource.

Following the completion of the deal, Ascensos will become a subsidiary of FSL UK and a step-down subsidiary of Firstsource Solutions.

Operating as a distinct business unit within Firstsource, Ascensos will retain its brand identity and continue to be headquartered in Scotland, the company revealed.  

The integration will leverage the combined technological capabilities and expertise of both companies to better serve the retail industry. John Devlin will remain as CEO, ensuring continuity for Ascensos’ clients.

The acquisition strengthens Firstsource's leadership in customer experience (CX) by expanding its presence in the retail sector. It aims to help brands navigate the next wave of digital innovation by simplifying complex customer journeys and seamlessly connecting front, middle, and back-office operations across digital, analog, and physical experiences.

Ascensos’ extensive knowledge of the retail sector complements Firstsource’s expertise in consumer markets, aligning well with the RPSG Group’s rich heritage in retail, which includes successful brands like Spencer’s, Nature’s Basket, and Quest, Firstsource highlighted.

Additionally, Ascensos’ nearshore delivery capabilities in Romania, South Africa, and Trinidad & Tobago will enhance Firstsource’s farshore delivery offerings, expanding execution opportunities and strengthening multilingual support. 

Meanwhile, Ascensos clients will gain access to Firstsource’s advanced technological capabilities in artificial intelligence, analytics, and automation, enabling the development of tailored solutions for the retail market.

“Retail and CPG BPO Market is a $28 billion market globally. Ascensos opens a host of new growth opportunities for us that are underpinned by our strategy of delivering differentiated services built on deep industry knowledge and tailored technology. This collaboration will benefit our current clients and enable us to pursue new opportunities in the thriving retail sector,” Goenka added.

At 9:22 AM, shares of Firstsource Solutions were trading 1.46 per cent higher at Rs 319.45 per share. In comparison, BSE Sensex was trading 0.13 per cent lower at 84,816.74 levels.