Blackstone agrees $1b exit from India’s Intelenet

Blackstone acquired Intelenet in 2015 for GBP250 million ($387 million) from Serco Group, the UK-based support services firm to which it had exited the business in 2011 for $634 million. It originally purchased a 66.25% stake in Intelenet in a management buyout in 2007 for less than $200 million.

Teleperformance is acquiring Intelenet with an eye toward expanding its own capabilities in order to meet its growth targets for 2022, along with strengthening its presence in India. The transaction is expected to close by September, subject to regulatory approvals.

Teleperformance was founded in 1978 and provides customer care, technical support, and customer acquisition services for companies in a range of sectors. The company has 223,000 employees in 76 countries and manages programs in 265 languages and dialects.

According to its most recent annual report, the majority of Teleperformance’s revenue for 2017 came from the telecom, technology, financial services, and healthcare sectors. Revenue stood at EUR4.2 billion ($4.8 billion) while net profit came to EUR305 million.

“The continued success of Intelenet is a testament to the exceptional quality of the management team, the value delivered to its customers, and the deep engagement with Blackstone,” said Amit Dixit, a senior managing director and head of India private equity at Blackstone, in a statement. “We are excited with the transfer of ownership to an industry leading company, Teleperformance, because it ensures continuity for Intelenet’s management, employees and customers.”

Intelenet has 40 service centers in the Americas, Europe, Middle East, India and the Philippines, serving over 110 clients primarily in the banking, financial services, and insurance sectors. The company reported revenue of $449 million for the year ended March 2018, up 10% from the previous year. EBITDA for the same period stood at $83 million, representing 18.5% of revenue, up from 17.4% the previous year.

Blackstone established its India office in 2005 and has since invested around $8.7 billion in the country across private equity and real estate. Recent activity in the country includes a INR14.8 billion ($217 million) exit from IT services provider Mphasis.

The GP recently closed its debut Asia-focused private equity fund at the hard cap of $2.3 billion, making it one of the last large global buyout firms to do so. The fund will invest pan-regionally with a focus on the consumer, electronics, manufacturing and medial sectors.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Technology
• Support services
• Trade sale
• India
• The Blackstone Group
• TMT
• Exit
• professional services