Back in October 2004, PeopleSupport Inc. (NASDAQ: PSPT) went public at $7 per share (the offering was fairly lackluster as the stock price fell on its first day of trading).
Well, now the company may no longer be public. That is, on Friday, PeopleSupport announced that it got a $15 per share buyout offer from IPVG and AO Capital Partners.
PeopleSupport provides offshore business process outsourcing services -- such as for customer management and transcription. The company operates in the Philippines, Costa Rica, and the United States.
However, the stock price plunged 38% in March because of a weak quarterly report. No doubt, the company faces intense competition from players like IBM (NYSE: IBM), Convergys, and eTelecare. Thus, it's likely we'll see consolidation in the space.
Interestingly enough, BloggingStocks had a piece -- a day before the buyout announcement --t hat showed that PeopleSupport had a "bullish 'flag'" pattern on its stock chart.
Yes, it certainly did.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
12-02-2007 @ 3:46PM
craig Jackson said...
They says its "unsolicited" but the word around town is that PSPT has become increasingly unhappy with being public and having hedgefunds tell them what to do. Many people heard they were looking for a vehicle to go private, and now this offer from an obscure filipino company? Well it will benefit PSPT since they will get to stop paying US Corp taxes as well, so the buy will pay for itself in just 3 years on tax savings alone!
Another company worth looking at is SSVE, they are about 1 year away from where PSPT was at thier IPO, and are doubling revenues every quarter!
Craig