Baring Private Equity Asia has shortlisted bidders including Bain Capital and French company Teleperformance SE for its India portfolio firm Hexaware Technologies in a deal that could fetch nearly $3bn. Also in the race are private equity firms KKR and The Carlyle Group.
In what might be the largest IT services buyout deal in the country, private equity firm Bain Capital, Carlyle and KKR are in the race to acquire Hexaware Technologies for $2.5 billion from Baring Private Equity Asia. The companies are in the fray along with the French outsourcing company Teleperformance SE, which owns Intelenet, which was also shortlisted for the potential acquisition, will do its due diligence on the target before bids are due to be submitted mid-August, according to an Economic Times report.
Scaled technology sector assets are on investors’ radar owing to increasing corporate IT spending on cloud services across Europe and US.
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The potential deal initially saw interest from Brookfield, Advent International, Partners Group, Apax Partners, Rackspace Technology and Fujitsu which was later reduced to a few players.
The Hong Kong-based Baring Asia began the sale process six months earlier after taking Hexaware Technologies private. It roped in Barclays and JP Morgan to find potential buyers. The holding company of Baring Asia, HT Global IT Solutions, owns 92% of the mid-tier IT services company. Minority shareholders hold the remaining shares.
In the fiscal year 2020, banking and financial services were the biggest verticals for the company contributing 38% of revenue to the company with clients such as Citi Bank and Bank of America, Freddic Mac and Fanny Mae. Insurance and healthcare which made up 21% were the other largest contributors; manufacturing made up 17% while travel and transportation were badly hit in the pandemic year.
Source: Times Now News
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