The divestment of Business Process Outsourcing (BPO) to FUJIFILM Holdings Corporation for $375 million was announced with the Annual Results on 27 August 2012.
The transaction follows an unsolicited approach regarding the possible acquisition of BPO. Following the approach, the Board received considerable interest from a range of parties, culminating in the transaction announcement.
The Board is pleased with the price achieved on the back of strong results from BPO. These results were driven by a strong sales focus, innovation and cost disciplines put in place by the management team over the past two years, during which time the business has developed significantly. However, we recognise that BPO is likely to have better growth potential with FUJIFILM Holdings Corporation, due to its superior international reach and broader outsourcing expertise, especially as it seeks to build out its e-business capabilities across Asia. Consequently, we are confident that we have received good value for BPO, a business we have built to market leader status over a 30 year period and that FUJIFILM Holdings paid fair value for a stable operating platform, long standing customer relationships, strong and secure data management capabilities and an emerging e-business product range. I thank and commend everyone at BPO for their efforts, and we wish FUJIFILM Holdings Corporation well for the fulfilment of their growth ambitions within the region.
At the time of writing, the transaction remains subject to Foreign Investment Review Board approval and completion conditions. Settlement is expected by mid-October 2012.
