| Wed 14 Nov 2007, 15:13 | | KEL - Kelly Group Limited - Kelly Extends Presence |
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KEL
KEL
KEL - Kelly Group Limited - Kelly Extends Presence In Call Centre Outsourcing
through iCHOICES acquisition
Kelly Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/026249/06
Share code: KEL
ISIN: ZAE000093373
("Kelly" or "the Kelly Group")
KELLY EXTENDS PRESENCE IN CALL CENTRE OUTSOURCING THROUGH iCHOICES
ACQUISITION
Johannesburg, 14 November 2007 - Staffing services provider the Kelly Group
has acquired the call centre outsourcing business iChoices, subject to a
satisfactory due diligence and the usual approvals. The purchase price is a
maximum of R110 million, subject among other things to iChoices achieving
profit warranties. Half the purchase consideration will be paid in cash and
half in Kelly shares acquired on the open market.
Kelly chief executive Grenville Wilson said the acquisition was in line with
the group`s stated strategic objective of expanding its presence in the high-
growth business process outsourcing (BPO) sector. Kelly already supplies
staffing for call centres and through iChoices will now also offer call
centre infrastructure and facilities, thus providing the market with a one-
stop service.
Wilson noted that government had identified business process outsourcing as a
priority growth industry and was aiming to create 25 000 additional offshore
seats by 2010, making South Africa a significant tier 2 player.
"Kelly has been an early entrant into this sector and some 5 000 call centre
seats are currently being filled by people we supply. As the industry gains
momentum, however, clients are increasingly demanding an integrated solution.
The acquisition of iChoices will enable us to provide this," he said.
"iChoices meets all our acquisition criteria: in terms of its offering it is
immediately adjacent to our existing business, and it has strong management,
a good track record, a blue-chip client base, access to world-class
technology and excellent organic growth prospects. It is anticipated that the
acquisition will be earnings enhancing in the short and medium term."
Listed on the JSE Limited in April this year, Kelly is due to publish its
results for the year to September on 22 November 2007.
For further information call Grenville Wilson, CEO Kelly Group,
on 011 722 8009
Issued by du Plessis Associates on behalf of Kelly Group Limited
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: kellygroup@dpapr.com
Website: www.kellygroup.co.za
Date: 14/11/2007 15:13:01 Produced by the JSE SENS Department.
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