Baring acquires Hinduja healthcare business for $1.2b
Baring Private Equity Asia has agreed to buy a healthcare services unit of Anglo-Indian conglomerate Hinduja Group at an enterprise valuation of $1.2 billion.
Healthcare is one of nine verticals of Hinduja Global Solutions (HGS), an India-listed business process management division of Hinduja. The Bangalore-headquartered company said it was exiting the sector as part of a shift toward a stronger focus on digital services.
Baring will acquire an organization with a presence in four geographies – India, the Philippines, the US, and Jamaica – and revenue of about $400 million in the 2021 financial year. The transaction will include the transfer of all client contracts, more than 20,000 employees, and assets including related infrastructure.
The company's service offering spans ember acquisition, enrolment, billing, benefit set-up, claims adjudication, provider credentialing, data management, and payment integrity. It also has capabilities in financial recovery, grievance and appeals, provider and member engagement, and various other functions related to the revenue cycle of a provider organization.
Clients are typically payers, providers, laboratories, medical equipment firms, and pharmaceutical companies.
“We have been investing in the technology services sector for more than two decades and have long admired HGS as a leading specialist healthcare services provider,” Jimmy Mahtani, a managing director at Baring, said in a statement.
“We are excited to now have the opportunity to partner with CEO Ramesh Gopalan and his team to help take HGS’ healthcare services business to the next level as a new independent company.”
This will be Baring’s seventh investment in IT services and third in healthcare technology services following a $996.7 million acquisition of US and India-based CitiusTech in 2019 and a $320 million acquisition of AGS Healthcare the same year.
Baring is currently raising its eight pan-regional fund with a target of $8.5 billion. The firm’s most recent activity in the broader IT outsourcing space involved the acquisition of India and Sri Lanka-based Virtusa last year for about $2 billion.
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