Private equity heavyweight Blackstone Group agreed to buy Indian back-office firm Intelenet Global Services Ltd. for an undisclosed sum, its first management buyout in India, reported Business Standard.
U.S.-based Blackstone, which along with rival Carlyle has been grappling with stiff resistance from Indian companies unwilling to sell out, will own 80 percent of Intelenet, with the back office firm's management holding the remainder.
Under the deal, a joint venture comprising HDFC Bank and Barclays Bank will sell its Intelenet stake to SKR Business Process Outsourcing Services, a company co-owned by Blackstone GVP Capital and Intelenet’s management. Although financial terms of the deal were not disclosed, industry Business Standard sources pegged the sale figure at around $420 million.
Intelenet’s management team will continue to be in charge of operations, with current Chief Executive Susir Kumar at the helm. Also, Intelenet will continue to provide services to Barclays in relation to certain processes currently offshored to India.
Intelenet started out in 1994 as a 50:50 joint venture between Tata Consultancy Services (TCS) and HDFC. In 2004, TCS sold its stake to HDFC for Rs 161 crore when it decided to focus on its own business process outsourcing (BPO) business. Subsequently, HDFC sold 50% to the UK-based Barclays, which was looking to outsource back-office processes to India.
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