CLSA acquires Japanese BPO firm

The deal will see CLSA purchase 100% of OSI's shares, according to a release; financial terms have not been disclosed. OSI's existing management will remain with the business and plans to work with CLSA to boost the company's growth and strengthen its internal structure.

CLSA made its investment through its second Japan-focused fund, Sunrise Capital II, which launched in 2012 and closed at $210 million in 2014. The fund seeks buyout opportunities that can capitalize on companies' technology, know-how, brands, services and potential for Asia expansion. The purchase of OSI is intended to take advantage of Japan's shrinking workforce and aging population.

"Labor shortages resulting from the declining population continue to be a recurring issue in Japan. In addition, many Japanese enterprises have struggled to retain and train high-quality talent organically to keep up with the increasingly competitive environment driven by globalization," said Megumi Kiyozuka, managing director and head of Japan for CLSA Capital Partners.

Founded in 2005, OSI provides technology-oriented staffing services to large Japanese manufacturing firms. It employs 2,500 permanent and part-time employees across nine subsidiaries, and claimed JPY10 billion ($97 million) in sales for the fiscal year ending August 2015.

CLSA's purchases from Sunrise have covered a range of sectors; the fund's first investment was in used car auction site BCN, now called Mirive, which it exited earlier this year to MR Holdings for an undisclosed amount. It also holds majority stakes in automotive tools retailer Worldtool, bought last year at a valuation of around JPY10 billion, and school operator BC Ings, which it bought earlier this year.

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