Lance Rosenzweig Appointed as the Global CEO of the Combined Business, Which Has a Presence Across 66 Business Process Outsourcing Locations, 13 Countries and 6 Continents
Aegis, a portfolio company of Capital Square Partners (CSP), and StarTek, Inc., both leading providers of outsourcing and technology services, have announced that they have completed a business combination transaction between the companies to create a leader in customer experience management. Aegis and STARTEK had previously announced that they had entered into a definitive agreement on March 14, 2018 relating to a strategic transaction to create a combined business of meaningful scale with combined pro forma 2017 revenues exceeding US$700 million.
With the consummation of this transaction, an affiliate of CSP now owns approximately 55% and STARTEK shareholders existing prior to the consummation of the transaction own approximately 45% of the combined business.
Aparup Sengupta, Chairman of the Board of Directors of the combined business said, “This transaction is expected to be value accretive for the new company with access to world’s most rapidly growing markets, multi-lingual offerings, strong footprint and the institution of operational excellence capabilities and industry best practices. This integration will largely benefit our customers with enhanced capabilities, strong leadership, economies of scale and product innovation.”
The combined business will remain publicly listed on the NYSE under the name “StarTek, Inc.” and the ticker symbol “SRT,” and the headquarters will remain outside of Denver, CO. The combined business has over 50,000 employees and a significant presence across 66 business process outsourcing (BPO) locations in 13 countries and 6 continents.
STARTEK has also announced the addition of Lance Rosenzweig as the Global CEO of the combined business. This development is aimed at strengthening leadership culture to significantly diversify revenue base, driving innovation and expand into new growth markets, while enhancing margin and profitability.
Lance Rosenzweig, Global CEO, of the combined business said, “Our employees have been the core of our success and with this alignment, we are excited to integrate talent, experience, products and services in order to be able to transition into a global leader in the BPM space. We will continue to drive technology innovation and provide world-class support and value to our clients globally.”
In connection with Mr. Rosenzweig’s appointment, the Company has entered into an employment agreement with Mr. Rosenzweig, which provides for the grant of an inducement equity award to Mr. Rosenzweig outside of the StarTek, Inc. 2008 Equity Incentive Plan, in accordance with NYSE Rule 303A.08. The agreement and grant have been approved by the Compensation Committee of the Company’s Board of Directors, and the grant is an inducement material to Mr. Rosenzweig agreeing to enter into employment with the Company.
The inducement grant to Mr. Rosenzweig will consist of options to purchase 584,000 shares of the Company’s common stock, with the options to have a ten-year term and an exercise price equal to the fair market value of a share on the date of grant. The options will be scheduled to vest in equal quarterly installments over three years following Mr. Rosenzweig’s start date, subject to his continued employment with the Company on the applicable vesting dates.
Shearman & Sterling LLP acted as legal counsel for Aegis. William Blair & Company, LLC acted as STARTEK’s financial advisor, and Jenner & Block LLP acted as STARTEK’s legal counsel.