Startek Makes Strategic Minority Investment in CSS Corp to Accelerate Digital Investments

Rhea-AI Summary

StarTek, a global customer experience management provider, announced a strategic investment of $30 million in CSS Corp, an IT services company. This investment gives StarTek an indirect beneficial interest of about 26% in CSS and an option to acquire a controlling stake. CSS, which has a strong recurring revenue model and operates across five continents, focuses on technology-centric support services. StarTek's CEO emphasized that this partnership will accelerate their digital service adoption and enhance margin potential.

Positive

• Investment of $30 million in CSS Corp enhances StarTek's service offerings.
• Acquisition provides approximately 26% indirect beneficial interest in CSS.
• Strong recurring revenue and diverse services position CSS favorably in the market.

Negative

• None.

StarTek, Inc. (NYSE: SRT) ("Startek" or the "Company"), a global provider of customer experience management solutions, today announced a strategic investment in CSS Corp. (“CSS”), a new-age IT services and technology support solutions company that harnesses the power of AI, automation, analytics, cloud and digital to address customer needs.

Capital Square Partners (“CSP”), a Singapore based Private Equity Fund Manager and Startek’s majority shareholder, acquired a controlling stake in CSS on February 25, 2021. Startek has participated in this transaction by contributing a total of $30 million in a limited partnership managed by CSP to acquire both an indirect beneficial interest of approximately 26% in CSS, as well as an option to acquire a controlling stake. The option to acquire a majority stake in CSS is at the sole discretion of Startek, and the Company has no obligation to do so.

Founded in 1996, CSS provides technology-centric customers with mission-critical support needs that encompass Enterprise and Consumer Technology Experience, Cloud and Infrastructure Services, Digital and Engineering Services, and Geospatial Technology Services. CSS operates a network of 18 campuses across five continents. With strong recurring revenues, growing technology customers and a platform based service model, CSS is uniquely positioned to partner with leading enterprises in their cloud and digitization journey.

Aparup Sengupta, Startek’s Chairman and Global Chief Executive Officer, stated, “This investment marks a key inflection point for Startek as it accelerates our adoption of digital-driven services and improves our potential for margin expansion. I have been closely following CSS for many years as they have built a unique organization that spearheads technology solutions for some of the biggest names in the rapidly growing technology sector. We are excited with this investment and look forward to our partnership with CSS.”

About Startek

Startek is a global provider of tech-enabled business process management solutions. The company provides omni-channel customer experience, digital transformation, and technology services to some of the finest brands globally. Startek is committed to impacting clients’ business outcomes by focusing on enhancing customer experience and digital & AI enablement across all touch points and channels. Startek has more than 40,000 CX experts spread across 46 delivery campuses in 13 countries. The company services over 250 clients across a range of industries such as Banking and Financial Services, Insurance, Technology, Telecom, Healthcare, Travel & Hospitality, Ecommerce, Consumer Goods, Retail, and Energy & Utilities. To learn more about Startek’s global solutions, please visit www.startek.com.

About CSS Corp

CSS Corp is a new-age IT services and technology support company that harnesses the power of AI, automation, analytics, cloud, and digital to address customer needs. The company partners with leading enterprises to help realize their strategic business outcomes. Its team of 7,500+ technology professionals across 18 global locations is passionate about helping customers differentiate and succeed. For more information, please visit https://www.csscorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210225006130/en/

FAQ

What was StarTek's investment in CSS Corp?

StarTek announced a $30 million investment in CSS Corp.

What percentage of CSS Corp does StarTek indirectly own?

StarTek has an indirect beneficial interest of approximately 26% in CSS Corp.

What is the significance of StarTek's investment in CSS?

The investment marks a strategic move to accelerate StarTek's adoption of digital services and improve margin potential.

When did StarTek make this investment in CSS Corp?

StarTek's investment in CSS Corp was announced on February 25, 2021.

What does CSS Corp specialize in?

CSS Corp specializes in IT services and technology support, focusing on AI, automation, and cloud solutions.