PE firms bid for CVCI-owned BPO firm SourceHOV - report

According to The Times of India, the two shareholders have enlisted Morgan Stanley to manage the sale. Two global outsourcing corporations are also said to be among those to have made offers. The initial bids - of which there are six in total - reportedly value SourceHOV at around $1 billion.

CVCI - which is said to have 65% stake in the company - invested an undisclosed sum in March, buying out minority shareholders including Apollo Global Management. SourceHOV was formed in May 2011 through a merger of HOV Services with Sourcecorp, then a portfolio company of Apollo, with each party holding 50% of the merged entity. HOV Services now has a 27.2% interest.

SourceHOV reported $525 million in revenue in the last financial year and $150 million in operating profit.

If the deal goes ahead, it will be the largest PE transaction involving an Indian BPO firm since Bain Capital acquired a more than 30% stake in Genpact for $1 billion last year.

Apax has already closed two deals in India's IT services sector: iGate Computer Systems, in which it invested $365 million in 2001; and Global Logic, where it invested around $420 million in October. Baring Asia, meanwhile, acquired 71% of Hexaware Technologies for around $400 million, agreeing to buyout existing shareholders in August and then launching a tender offer for an additional stake.

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• Topics
• Technology
• South Asia
• Exits
• Buyouts
• Secondaries
• India
• Baring Private Equity Partners India
• Bain Capital Asia
• Apax Partners
• The Carlyle Group
• Secondaries
• Exit
• TMT
• Citi Venture Capital International (CVCI)