Firstsource Solutions shares rise after acquiring UK-based Ascensos for £42 million

Firstsource Solutions’ share price on Tuesday was up by 2.4% at ₹322 per share.

Ascensos provides outsourcing solutions for retail and e-commerce businesses. Firstsource reported that Ascensos will operate as a separate business entity within the company in order to continue its brand while leveraging Firstsource’s technological capabilities and employees. John Devlin, the current chief executive officer of the company will retain his role along with the Ascensos maintaining its headquarters in Scotland.

The company stated that Ascensos’ experience in retail synergises well with Firstsource’s expertise in consumer markets. The acquisition will allow the companies to make use of Firstsource’s farshore delivery and Acesnsos’ nearshore delivery capabilities. As a result, Firstsource will be able to expand its operations in countries including Romania, South Africa, and Trinidad & Tobago.

Further, the company reported that Ascensos’ clients will benefit from Firstsource’s domain knowledge in fields such as artificial intelligence, analytics, and automation.

Sanjiv Goenka, chairman of RSPG Group and Firstsource Solutions, said, the acquisition is in line with the company’s strategic plans for expansion. The acquisition also opens up new growth opportunities and will help the companies leverage each other’s capabilities to expand in the retail and BPO market.

“Ascensos opens a host of new growth opportunities for us that are underpinned by our strategy of delivering differentiated services built on deep industry knowledge and tailored technology. This collaboration will benefit our current clients and enable us to pursue new opportunities in the thriving retail sector,” he said.

Firstource Solutions’ revenue for Q1FY25 was up 17.1% year-on-year (YoY) to ₹1,791 crore. The company’s net profit for the quarter climbed 7.4% YoY to ₹135 crore.

Shares of the company have risen by nearly 74% since the beginning of the year. The stock has gained over 96% in the past year.