Amazon to acquire $600M stake in StarTek
GREENWOOD VILLAGE — Amazon.com Inc. might be flirting with Denver and 19 other cities for its much-sought-after HQ2, but the Seattle-based retail giant has already proved its love for the Front Range by agreeing to purchase up to 4 million shares of Greenwood Village-based StarTek Inc. (NYSE: SRT).
StarTek, a customer-engagement and business-process outsourcing company, announced the deal in a filing with the U.S. Securities and Exchange Commission, Jan. 23. Under terms of the agreement, StarTek will issue to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon, a warrant to acquire the shares for $600 million. The warrant is exercisable through Jan. 23, 2026, with shares priced at $9.96.
Amazon can exercise the warrant for up to 19.9 percent of the shares of common stock outstanding without approval of StarTek shareholders; exercise of the remaining shares would require approval of shareholders, which StarTek intends to seek at its next annual or special meeting.
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StarTek’s share price soared on the news Wednesday, closing at $13.55, up 31 percent from Tuesday’s close of $10.33.
StarTek was founded in Greeley as StarPak Inc. in 1987. The company continues to maintain a large operation in Greeley, employing an estimated 470 workers at its 35,000-square-foot Greeley Engagement Center at 1250 H St. The company employed 13,500 workers worldwide at the end of 2016.
The Denver area last week was named one of 20 finalists for Amazon HQ2, which would potentially bring 50,000 jobs. Amazon recently opened a fulfillment center in Aurora and is building a second fulfillment center in Thornton.
GREENWOOD VILLAGE — Amazon.com Inc. might be flirting with Denver and 19 other cities for its much-sought-after HQ2, but the Seattle-based retail giant has already proved its love for the Front Range by agreeing to purchase up to 4 million shares of Greenwood Village-based StarTek Inc. (NYSE: SRT).
StarTek, a customer-engagement and business-process outsourcing company, announced the deal in a filing with the U.S. Securities and Exchange Commission, Jan. 23. Under terms of the agreement, StarTek will issue to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon, a warrant to acquire the shares for $600 million. The warrant…
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