Benzinga | Feb 25, 2021 04:50PM EST

Startek Makes $30M Minority Strategic Investment In CSS Corp.

StarTek, Inc. (NYSE:SRT) ("Startek" or the "Company"), a global provider of customer experience management solutions, today announced a strategic investment in CSS Corp. ("CSS"), a new-age IT services and technology support solutions company that harnesses the power of AI, automation, analytics, cloud and digital to address customer needs.

Capital Square Partners ("CSP"), a Singapore based Private Equity Fund Manager and Startek's majority shareholder, acquired a controlling stake in CSS on February 25, 2021. Startek has participated in this transaction by contributing a total of $30 million in a limited partnership managed by CSP to acquire both an indirect beneficial interest of approximately 26% in CSS, as well as an option to acquire a controlling stake. The option to acquire a majority stake in CSS is at the sole discretion of Startek, and the Company has no obligation to do so.

Founded in 1996, CSS provides technology-centric customers with mission-critical support needs that encompass Enterprise and Consumer Technology Experience, Cloud and Infrastructure Services, Digital and Engineering Services, and Geospatial Technology Services. CSS operates a network of 18 campuses across five continents. With strong recurring revenues, growing technology customers and a platform based service model, CSS is uniquely positioned to partner with leading enterprises in their cloud and digitization journey.

Aparup Sengupta, Startek's Chairman and Global Chief Executive Officer, stated, "This investment marks a key inflection point for Startek as it accelerates our adoption of digital-driven services and improves our potential for margin expansion. I have been closely following CSS for many years as they have built a unique organization that spearheads technology solutions for some of the biggest names in the rapidly growing technology sector. We are excited with this investment and look forward to our partnership with CSS."