Oak Hill exits India's Vertex to strategic buyer

Financial details have not been disclosed; the Economic Times, which confirmed the deal with Altruist's chairman, estimated that Vertex India was valued at INR2.5-3 billion ($37.4-44.9 million). Oak Hill, along with GenNx360 Capital Partners and Knox Lawrence International, acquired Vertex for $426 million in 2007 as a carve-out from UK-based United Utilities. The purchase included Vertex's UK headquarters, the India assets and all other operations.

Altruist was launched as a BPO firm in 2005 before entering the mobile communications business; it now primarily offers IT solutions to India's communication companies. Upon completion of the acquisition Altruist will integrate Vertex into its existing BPO operations.

Vertex has over 10,000 employees in 12 cities across India, delivering services to customers in the telecom, financial services, and retail and logistics sectors, along with the government's Tax Information Network. Its private sector clients include both domestic and international companies.

Oak Hill primarily invests in North America, targeting investments of $100-300 million in the industrials, media and communications, services, and consumer and retail sectors. Other Asia-based portfolio companies include BPO player Genpact. Oak Hill and General Atlantic acquired 60% of the business in 2004 and listed in New York three years later. In 2012, they sold 30% to Bain Capital for $1 billion.

India's BPO sector has continued to represent an attractive investment destination for private equity. Earlier this year The Blackstone Group agreed to pay up to INR70 billion to Hewlett Packard for a majority stake in IT services provider Mphasis, and Baring Private Equity Asia paid C$1.2 billion ($930 million) for a 35% stake in Telus International, the BPO arm of Canadian telecom company Telus.

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• Topics
• South Asia
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• India