This article and interview is well worth a read.. it looks like the USA should be saying welcome to the Indian way of doing LPO… this interview suggests Pangea3 offices will be opening throughout the states.
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Here’s the introduction to the Piece by Legally India
Link for full article at http://www.legallyindia.com/201011191533/Legal-Process-Outsourcing-LPO/exclusive-payday-for-pangea3-founders-lawyers-in-thomson-reuters-buy-lpo-to-build-onshore-centres-in-us
Exclusive: Payday for Pangea3 founders, staff in Thomson Reuters buy; LPO to build onshore centres in US
Pangea3?s full acquisition by Thomson Reuters could trigger others to follow suit, predicted the legal process outsourcing (LPO) provider?s co-founder and CEO Sanjay Kamlani in an exclusive Legally India interview, as hundreds of employees will receive a windfall from the sale that will see Pangea3 explore synergies with its new parent and expand with onshore operations in the US.
Only one week after US-Indian LPO UnitedLex bought California-headquartered LawScribe, Pangea3 at 3:30 am Indian time this morning closed its sale to Thomson Reuters, a company which provides data, information and news services but is a new entrant to the LPO game.
Former OfficeTiger CFO and GC Kamlani, who founded Pangea3 together with former Monster.com GC David Perla, told Legally India that Thomson Reuters had acquired 100 per cent of Pangea3?s shares. Of these roughly 50 per cent were previously owned by outside investors and private equity houses Sequoia Capital and Glenrock Group, which had bought $7m and $4m stakes in 2007 and 2006 respectively.
Kamlani (pictured) added that ?probably a couple of hundred? Pangea3 employees were holding employee share options (ESOPs) and would receive consideration from the deal on a one-to-one basis for every share they held, and that in the past there was a time when every Pangea3 employee was getting ESOPs.
Kamlani, Perla, managment and employees jointly held around the other half of the LPO?s equity before yesterday?s sale but Kamlani declined to comment on Business Standard?s cited transaction value figure of $35 to $40m.
One rival in the LPO sector commented that he thought that Thomson Reuters probably picked up the LPO for less. ?Not a single LPO has ever been valued,? he said. ?The purchase prices in both UnitedLex/LawScribe and Pangea3/TR are ?reported? by ?unnamed? sources. But TR is a public company, and check its annual report sometime in the next year […] though TR may not even list it. Let’s see then what the actual purchase price is but TR’s annual report will be the first time an LPO will be valued.?
The Pangea3 name would remain unchanged, said Kamlani while adding that a tagline might be added branding the LPO as a division of Thomson Reuters Legal.
