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American Data Exchange Corporation could spin-off FirstCarbon Solutions in eventual IPO, looking at bolt-on acquisitions, group CEO says

April 12, 2011

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April 12, 2011 - American Data Exchange Corp (BPO Asia) Group would consider spinning off its environmental services subsidiary FirstCarbon Solutions in an eventual IPO, said Group CEO James Donovan. The 5000-employee Philippines-based business process outsourcing company is closely held by Donovan and his co-founder, CFO Carol Esguerra.

"People come with presentations all the time," he noted, though the company is still in early stages of consideration and is not tied to any particular advisor.

It would also consider non-core divestures, he said, citing as an example spinning off its online language learning platform A-Plus International into a joint venture with a strategic investor which can grow it more rapidly.

BPO Asia is approached often by interested investors, Donovan said, but the former investment banker explained that the company would need "more than money" for any tie-up. He described as a strategic partner, one that could provide it with market access in existing or new geographies.

Meanwhile, it continues to look at bolt-on acquisitions to augment its business offerings, he said, and it would look at deals similar to ones it had made in the past. These could be "front-end pieces" as it goes into new business areas, Donovan said, pointing to its precious buy of consultancy, both in the US.

US-based FirstCarbon Solutions acquired in the US Global Sourcing Advisory Group and Enverity Corporation in early 2010, as well as the utility optimization practice of The Plan Consulting Group in early 2011. Donovan noted that these "bite-sized deals" might not be sizable in "investment bank terms."

Founded 12 years ago, companies under the group also include Amdatex, BPO Asia Solutions and Pharma KPO. It has always fuelled growth through internally generated funds, Donovan said. He mentioned that although its main markets have traditionally been developed markets in the US and in Europe, it is now looking to shore up its presence in Asia, where growth is happening at a more rapid rate.


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