Ayala invests in BPO sector

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Ayala Corporation has formed LiveIt Solutions, Inc., a 100%-owned subsidiary that will be the holding company for its investments in the rapidly growing Business Process Outsourcing (BPO) sector.

LiveIt's first investment is the acquisition of an 11% minority stake in eTelecare Global Solutions, Inc. for approximately P800 million through its wholly-owned special purpose vehicle - New Bridge International Investment Ltd.

eTelecare was started in 2000 and is one of the leading call center companies in Asia, serving large global clients in the telecommunications, electronics, financial and travel industries. With over 7,000 employees in 12 call centers in the Philippines and the United States, the company reported $41 million in revenues and $3.3 million in operating income for the first quarter of 2006. eTelecare will be LiveIt's primary investment in the fast-growing call center industry.

Going forward, LiveIt seeks to invest in companies that provide complex non-voice outsourced services, in areas such as the research and analytics, legal, financial and healthcare industries. The company plans to focus on BPO companies in the U.S., the Philippines and India that have well-developed customer relationships in the international markets and the potential to leverage the Philippines' large pool of skilled professionals.

Ayala chairman and CEO Jaime Augusto Zobel de Ayala said: "We are very positive about this foray into the BPO sector. This is an area where the Philippines has a strong competitive advantage given our wealth of talent, strong communications skills, and well-developed telecom infrastructure. We are actively seeking additional opportunities that will enable us to provide high value added services."

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