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Sitel Agrees to Buyout

ClientLogic will pay $450 million for the call center operator.
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Call center operator

Sitel

(SWW)

agreed to be acquired by ClientLogic, a fellow business outsourcing company, for $450 million.

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ClientLogic, a unit of Candian congolmerate Onex, will pay $4.05 a share for Sitel, representing a 15% premium over the company's closing price of $3.52 Thursday.

"Our board and our financial advisor Citigroup reviewed numerous opportunities while searching for strategic alternatives that would create the greatest value for our shareholders," said Sitel Chairman and Chief Executive Jim Lynch in a statement. "Based on this review, it was clear to Sitel's board that the offer from ClientLogic represents the best alternative to create significant shareholder value."

The combined entity will have about $1.7 billion in revenue, the companies said.

The deal is expected to close in the first quarter of 2007. Nearly 20% of Sitel's outstanding shares are subject to voting agreements that require the shares to be voted in favor of the merger.

Shares of Sitel recently were up 38 cents, or 11%, to $3.90 on heavy volume.