Aegis BPO, a global business process outsourcing (BPO) provider and part of the Essar group, has agreed to buy the Nasdaq-listed offshore BPO provider PeopleSupport, in an all cash deal of $250 million through its Mauritius subsidiary Essar Services.

As per the agreement, Aegis BPO will pay PeopleSupport stockholders $12.25 a share in cash through Essar Services (Mauritius), which represents a premium of about 29% over PeopleSupport’s closing share price on August 1, the last trading day prior to the announcement, and a premium of about 42% over the weighted average trading price of the company’s shares during the previous 30 trading days.

The deal has been approved by the boards of directors of both companies.

Following the merger, Aegis BPO will become a leading player in the global BPO market with operations in India, the Philippines, the U.S. and Costa Rica.