BPO service provider Vertex, a subsidiary of U.K.-based United Utilities, is reportedly close to being sold. A published report said the outsourced F&A service provider, which serves mostly utilities and public-sector customers, may be acquired by India-based Tata Consultancy Services.
Computer Business Review Online reported that United Utilities has held discussions with investment banking giant Merrill Lynch to discuss improving shareholder value and that several bids for the unit had already been received. A spokesperson for United said that no decision on Vertex had been made.
It further cited some industry analysts suggesting that Tata, India’s largest IT services vendor, could be among the companies interested in acquiring Vertex.
Manchester, U.K.-based Vertex provides contact center management, FAO, and HRO services. The company has approximately 9,000 employees located in centers in the U.K., Ireland, Switzerland, Liechtenstein, the U.S., Canada, and India and reported operating profit of $38 million on sales of $745 million in the fiscal year ending in March of this year.
Vertex is mostly focused on the utilities sector, but it has garnered a number of government clients. In 2004, it secured a 15-year outsourcing deal worth $786.4 million with the Thurrock Council, a government body. Vertex has also won significant deals with the Hertfordshire County Council and Westminster City Council.