Firstsource Solutions stocks gains 3% on acquiring UK firm Ascensos for £42 million

Ascensos will operate as a separate business unit within Firstsource, keeping its existing brand and maintaining its Scottish headquarters.

Shares of Firstsource Solutions, part of the Rs 90,000 crore RP-Sanjiv Goenka Group, surged three percent in the early session on September 24.

The firm announced that it acquired UK-based Ascensos, a customer experience outsourcing partner for retail and eCommerce businesses, for £42 million, including upfront payment and earnouts.

At 9.15 am, shares of Firstsource Solutions were quoting Rs 324.8 on the NSE, higher by three percent compared to the previous session's close.

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Ascensos will operate as a separate business unit within Firstsource, keeping its existing brand and maintaining its Scottish headquarters while using the combined company’s technological capabilities and expert employees to serve the retail industry better. John Devlin will remain as CEO, guaranteeing continuity for Ascensos clients, according to a press release on September 23.

Commenting on deal, Sanjiv Goenka, Chairman - RPSG Group and Firstsource, said, "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.”

"We expect the acquisition to be margin dilutive initially. Firstsource Solutions's margin profile is expected to gradually improve with anticipated revenue and operational synergies," said domestic brokerage Emkay Global. The brokerage retained its 'add' rating, with a target price of Rs 330 per share.

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