SourceCorp, which began life as a document imaging service bureau roll-up, has entered into an agreement to merge with HOV Services. HOV Services is an India-based document services outsourcing specialist that acquired SourceCorp competitor Lason back in 2007. Back in the late 1990s, Lason and SourceCorp (then known as FYI) engaged in a bit of a bidding war for service bureaus. SourceCorp, which was founded by executives from outside our industry, took a more fiscally responsible to the roll-up. I remember a conversation with a few SourceCorp execs at AIIM 1998, who accurately predicted the impending fall of Lason - which actually had three ex-execs go to jail for stock fraud, or something along those lines.
Lason was eventually bought by the investment group Charterhouse for something like $25 milllion and some assumed debt. Charterhouse, which also had an investment in document capture ISV Top Image Systems, then flipped Lason for $148 million to HOV three years later. At the time, the combined company was estimated to have more than $200 million in annual revenue. SourceCorp, which reported revenue of greater than $400 million in 2005 as a public company, was sold to the investment firm Apollo Management in 2006 for $475 million. I thought SourceCorp had dispersed some of its businesses since then to narrow its focus, but we'll estimate that the new HOV/SourceCorp entity is worth at least $500 million annually. Definitely an interesting starting point for a BPO business.
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What are your thoughts on this "new" entity being merged; being that the HOV president is over the BPO side? Its apparent the the HOV president will have more control over what happens to the BPO department as a whole. It is not really clear on the control that Ed Bowman will have, if any on the BPO side.
The way I read it is that the HOV president will report to Bowman. I don't know that there is any busiess aside from BPO. Maybe I am wrong on this.
Sourcecorp has 5 divisions, the BPS group is just one of them.
Document scanning services makes enable your business to create electronic versions of documents for online data storage where they can then be either burned onto a CD or imported into a retrievable system.
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