Wednesday, April 4, 2018
HGS Acquires Majority Stake in Element Solutions in the Buy-Side Segment
Hinduja Global Solutions Limited, announced that its subsidiary Hinduja Global Solutions UK Limited has today entered into a definitive agreement to acquire 57 percent equity stake in Element Solutions LLC, USA, a digital consulting services company, for a consideration of US$ 5 million. The transaction is expected to close in the next 15 days.
Element Solutions provides high-end digital rategy and solutions in customer digital experience, data-driven marketing and cloud managed services areas. With over 160 successful digital engagements, the company supports more than 35 top Fortune 500 brands, primarily in the healthcare, manufacturing and retail industries.
The modern customer lifecycle has two broad areas: Buy-side – comprising of market and sell segments and the Own-side – comprising of support and serve segments. HGS has traditionally been focused on the Own-side but started to cater to the Buy-side in the last couple of years. The acquisition of Element will help HGS Interactive (HGSi), HGS’ digital services division, to strengthen its Buy-side portfolio by adding new capabilities and expertise in customer digital experience and digital marketing. It will also bring together a complementary client base across sectors and add significant onshore presence for HGSi. Post acquisition, HGS will add over 75 employees comprising strategic thinkers, digital marketers, user-centric designers, software engineers and developers, of whom 33 are in the US and the rest in India.
“As part of our strategy to drive digital-led transformation for clients, HGS has been investing significantly in technology and solutions to reimagine customer experiences. The investment in Element Solutions expands on this strategy and helps position us as an end-to-end digital transformational leader who can impact the entire customer lifecycle for brands,” said Partha DeSarkar, Chief Executive Officer, HGS. “I am pleased to welcome the talented team of Element to the HGS family and look forward to leveraging their expertise to drive higher value.”
“The partnership with HGS will help us deliver better on our brand promise of ‘Creating Digital Experiences that transform traditional businesses to digital innovators’ at scale. We are excited about the opportunities ahead and are committed to working with our clients to drive impact,” said Venkatesh Korla, Founder & CEO, Element Solutions.
An innovative, global digital agency, HGSi provides global brands an array of 360 degree digital solutions including digital marketing, social CRM and web/ mobile apps to several marquee clients in CPG, hospitality, BFSI and ecommerce sectors. The business has over 150 employees, most of whom are based in Mumbai. Analyst firm NelsonHall recently named HGS as a LEADER in its Digital Marketing Services NEAT report 2018.