Lankan blue chip buys 44% stake in Quatrro Finance and Accounting Solutions for $ 5.7 m
John Keells Holdings PLC (JKH) said last week it has invested US Dollars 5.72 million for a 44% equity stake in Quatrro Finance & Accounting Solutions Private Limited (Quatrro F&A).
Quatrro F&A is the India based Financial and Accounting (F&A) business of the Quatrro group, headed by Raman Roy.
JKH and Quatrro in 2006 announced a partnership to develop a business process outsourcing (BPO) business in the Asian region, initially focusing on India and Sri Lanka. Quatrro F&A has acquired the Chicago based Financial Process Outsourcing LLC (FPO) in a structured financing transaction using a combination of instruments including debt and equity. FPO is a niche player in the F&A outsourcing vertical, focusing on small and medium enterprises. FPO currently has facilities in the USA and Mumbai with approximately 500 staff. The F&A outsourcing vertical has grown rapidly over the last few years as the cost advantages from labour arbitrage are compelling. It is expected that Quatrro F&A would in due course have a facility in Sri Lanka.
JKH and Quatrro believe that Sri Lanka has the potential to be a major location for F&A outsourcing due to the skill level of finance and accounting professionals in Sri Lanka and the availability of qualified accountants, particularly for higher verticals of F&A. The investment in Quatrro F&A is a step forward in JKH’s plans of building a regional BPO business. JKH currently has BPO facilities located in Gurgaon and Colombo with approximately 550 staff. With the investment in Quatrro F&A, JKH’s presence in the BPO business will be significantly enhanced. Quatrro, founded by Raman Roy, is a BPO company focusing on pioneering new service lines, geographies and business models in Business Process Outsourcing. The company provides a range of vertical and horizontal service offerings, which are targeted towards global clients in North America, Europe and Asia. Quatrro’s solutions encompass Risk Management and Fraud, Technical Support, Finance and Accounting, Market Research, Knowledge Services and Mortgage Processing. “Creating value through innovation” is the cornerstone of Quatrro’s business philosophy. The company is on a constant mission to provide its clients with innovative solutions at lower costs through a combination of tools, platforms and business processes.
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