India's diversified Aditya Birla group Monday announced its plans to acquire Canada's Minacs Worldwide Inc, a business process outsourcing (BPO) firm, for about $125 million.

"TransWorks Information Services Ltd, an arm of Aditya Birla Nuvo Ltd, will pay (Canadian) $5.50 a share of Minacs Worldwide, a BPO firm which also has operations in the US and Europe," the group company said in a statement.

"The integrated expertise of both companies will create and provide more powerful and compelling BPO solutions to clients. Post acquisition, the two companies are expected to jointly earn revenues of up to $300 million," Aditya Birla group chairman Kumar Mangalam Birla said.

The Toronto-based private investment firm, ReichmannHauer Capital Partners, a partner with the Aditya Birla group in evaluating the transaction, also intends to invest in the combined entity.

"ReichmannHauer Capital Partners is expected to buy a nearly 10 percent stake in Minacs after the deal is complete," Transworks chief executive officer Atul Kunwar said.

"The deal is subject to approval from Minacs shareholders and is expected to be completed by the end of August. The Transworks offer has a validity of 35 days, unless further extended," he said.

Transworks is proposing to acquire up to 100 percent of the shareholding in Minacs on a fully diluted basis through an open offer with a total outlay of $125 million, the statement said.

In a separate statement, Minacs said the agreement signed between the two companies prohibited it from seeking any other acquisition proposal.

In case it considers a proposal superior to that of Transworks, it will have to first end the deal by paying $4.5 million as termination fees to the Indian entity.

"Under the definitive agreement, Transworks has the right to match any such superior proposal," the statement said.

Minacs Worldwide has been vulnerable to takeovers after the death of its founder Elaine Minacs in May.

Privately owned Dubai-based Multi International Invest FZC had offered $160 million to acquire the company but later withdrew the offer, citing delays in talks with the Minacs board.

The Aditya Birla group already operates two companies in Canada, Atholville Pulp Mill and Nackawic Pulp Mill.

In India, the group has a joint venture in financial services with Sun Life of Canada and a joint venture in aluminium business with Alcan.