Paxys inks agreement with Stellar Holdings

Paxys Inc., the only call center firm listed on the Philippine Stock Exchange (PSE), has signed an agreement with Stellar Holdings Inc. (STHI) to jointly establish a Philippine-based company that will provide business solutions services.

STHI is a wholly-owned subsidiary of J-Telecom Interest Inc., a US company which provides business solutions services across a range of industries in Australia, Canada and Europe.

Paxys said the new company, which will have an authorized capital stock of P100 million, will be known as Stellar Global Solutions Philippines Inc.

Through SGSPI, Paxys and STHI intend to provide a blended Philippine/Australian outsourcing solution initially to Australian-based clients, a market largely untapped and unserviced by Philippine call centers.

In Australia, J-Tel’s operations are carried out through Stellar Call Centres Pty. Ltd., Australia’s premier customer contact solutions provider employing over 3,000 staff over a national network of nine contract centers.

Each of the parties will have an initial paid-up capital in the amount of P3.125 million.

Paxys posted a net income of P201.29 million in the first six months of the year or an increase of 94 percent from P103.84 a year ago, mainly coming from new clients and new markets.

In the second quarter alone, Paxys’ net income reached P124.68 million or more than double the P52.4 million recorded the previous level.

Consolidated service income grew 98.6 percent in the period January to June this year to P1.07 billion from only P538.81 million. The significant increase was attributed to higher volume hours and full time equivalents of one of the US-based clients of subsidiary Advanced Contact Solutions, registered income of Smart Salary amounting to P44 million, and the additional earnings contribution from 60-percent owned subsidiary ScopeWorks Asia Inc., amounting to P1 million.

ScopeWorks is a local company that provides high quality and cost effective transcription, editing and proof-reading services. It is one of the pioneers in the legal scoping industry in the Philippines and has its main customers court reporters in the US.

To further augment its revenues, Paxys is looking at Australia, United Kingdom and even Asia as new sites for expansion.

Paxys plans to raise further its stake in Global Idealogy Corp. (GIC), a leading provider of corporate mobile software applications in the domestic pharmaceutical industry. It currently holds 15.81 percent interest in GIC which Paxys intends to increase to 51 percent through phased acquisitions.

The acquisition of GIC is intended to support its strategic intent to broaden and deepen its product and service offerings in the business processing outsourcing sector.

Paxys’ goal is not only to expand its core voice services but also to diversify into advance data services and eventually advance into IT outsourcing and other information technology solutions.