Bain Capital to buy 30% stake in Genpact for $1b

Bain will acquire 68 million shares at $14.76 apiece, subject to a two-and-a-half year lock-up, Genpact said in a statement on Wednesday. The price represents a 14% discount to the company's Wednesday closing price.

The transaction is expected to close later this year after payment to all shareholders, including GA and Oak Hill Capital, of a special dividend of $2.24 per share. As part of the deal, Bain can name four directors to Genpact's board, while Robert Scott will continue to serve as chairman of Genpact and N.V. Tyagarajan will retain his role as president and CEO.

According to AVCJ Research, Oak Hill Capital and GA invested $500 million in Genpact in 2004 for a 60% stake. Genpact subsequently listed on the New York Stock Exchange in 2007, raising $500 million.

"General Atlantic and Oak Hill Capital have been terrific partners for more than seven years and have been incredibly helpful in supporting our transformation from a captive business process services operation to a diversified, global leader in business process management and technology services," said Scott.

It was previously reported that Bain and Apax Partners were competing for a 41% stake in Genpact, valued at $1.4 billion. Government of Singapore Investment Corp. (GIC) ws also touted as a potential joint bidder with Bain.

"Genpact has earned its leadership position by partnering with global companies to improve business outcomes," Bain said in a statement. "Their relentless focus on the client and moving up the value chain has resulted in impressive revenue and client growth since becoming a public company in 2007."

The news comes after Genpact announced a 57% year-on-year increase in second-quarter net profit to $61.1 million. Revenues also rose 18%.

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• Topics
• South Asia
• PIPEs
• Support services
• Bain Capital Asia
• Apax Partners Hong Kong
• General Atlantic
• PIPE
• India