Hinduja Global Solutions sells healthcare vertical to Barings PE Asia for $1.2 billion - Moneycontrol.com

Hinduja Group's healthcare vertical is US-focused, has 35-plus clients and 24,000 employees across 34 locations in five countries. [Representative image]

As a part of a strategic plan to unlock value for all shareholders, Hinduja Global Solutions (HGS), the BPO arm of diversified conglomerate Hinduja Group, announced the sale of its healthcare services business to bulge bracket private equity fund Barings Private Equity Asia for an enterprise value of $1.2 billion. The sale was announced after a board-meet on August 9.

“The proposed transaction is subject to completion of conditions precedent including regulatory approvals and approval of the shareholders of the company,” HGS said in a late evening exchange filing.

On December 8, 2020, Moneycontrol was the first to report the value-unlocking exercise undertaken by the Hinduja Group, adding that investment bank Barclays had been appointed to hive off the healthcare vertical and tap private equity suitors.

Later, on May 27, Moneycontrol was also the first to report that Barings Private Equity Asia had emerged as the front-runner for the deal.

LENS ON HINDUJA GLOBAL SOLUTIONS AND THE BARINGS INDIA PORTFOLIO

For the year ended on March 31, HGS had revenues of $753.9 mn, out of which 53 percent came from the healthcare vertical.

According to a company presentation released on February 18, 2020, Hinduja Global Solutions is in the business of inbound voice & non -voice (transaction processing + digital). As on December 30, 2020, the firm had 59 worldwide centres, 49,100 plus employees and 244 active clients for the BPM ( business process management) business. Additionally, it had 704 clients for the payroll and HRO business.

The healthcare vertical is US-focused, has 35-plus clients and 24,000 employees across 34 locations in five countries, the presentation added.

The Indian portfolio of Barings Private Equity Asia includes firms like Hexaware, Virtusa, Citius Tech, Coforge ( formerly called NIIT Technologies), CMS, AGS Health and RBS Bank. Reports indicate the PE firm has put delisted IT firm Hexaware on the block for $2.5 to $3 billion.

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Hinduja Global Solutions sells healthcare vertical to Barings PE Asia for $1.2 billion - Moneycontrol.com
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