HOVS Ltd. HOV Services LTD.
Joint Venture Overview

HOVS merged its indirect subsidiary HOV Services LLC (“HOV Services”) with SOURCECORP, Inc. (“SOURCECORP”), a portfolio company of Apollo Management V, L.P. SOURCECORP is a Texas-based BPO services and specialty consulting services company. Shareholders of HOV Services and SOURCECORP will each control 50% of the combined entity, i.e. SOURCEHOV, Inc., a Delaware corporation. The merger brings together two highly recognized companies and created one of the largest global business process outsourcing and professional consulting services entities in the world. The management team of SOURCEHOV has over 25 years of expertise in the Industry, with a proven track record of seamlessly integrating core M&A components and continuously innovating new technologies to create end-to-end services and new value for its customers.


Transaction Rational

MP   Created Stronger market position as a larger and more scaled pure play BPO company.
  • The Combination creates one of the largest end-to-end BPO and KPO companies in the industry with revenues of ~$500 Mn.
  • Marquee client relationship with more than half Fortune 100® companies.
  • Market leading position across select industries with differentiated domain expertise.
  • Global delivery capabilities with ~ 14,200 employees across ~100 delivery centers in 6 countries.
  • Low client concentration – TOP 1, 15 and 30 clients comprise 5.2%, 25.7% and 33.8% of the total revenue respectively.
RCS   Provides new revenue opportunities for growth
  • Many satisfied, referenceable, marquee clients that can be up-sold with additional products and services.
  • Sales force and account management team with expanded service offerings
  • Strong client facing business and knowledge experts
  • Adoption rate of new services and recent logo wins is indicative of unaddressed market opportunities.
  • Joint Capabilities provide opportunities for deeper penetration of existing vertical market.
CS   Provides stronger free cash flow generation and increased ability to deliver
  • The Companies have favorable cash flow characteristics which are expected to enable substantial debt reduction and rapid deleveraging during the projected period.
  • Highly visible and recurring revenue, EBITDA and free cash flow
  • Low capital expenditure requirements
  • Both companies only require approximately $3Mn to $5Mn, of maintenance Capex / Year.  
COS   Creates more scalable operating platforms with significant operating leverage
  • Significantly reduces costs through specific identified synergies, such as:
    • Consolidation and off-shoring of IT, Engineering and Implementation teams.
    • Significant opportunity to consolidate redundant facilities and rationalize corporate expenses.
    • Improved utilization in overlapping products segment.
    • Builds upon proven track record of cost savings and effective rationalization.
MNG   Experienced Management Team
  • Senior management has an average of over 25 years of industry experience and has a proven track record of seamlessly integrating companies and achieving significant cost synergies.
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