Indian Firm Hinduja Global Solutions Sells Healthcare Division To Baring PE Asia For $1.2 Billion
BENGALURU, India — Indian IT service company Hinduja Global Solutions (HGS) has announced the sale of its healthcare services business to Baring Private Equity Asia for an enterprise value of $1.2 billion (INR 8,906 crore).
Baring Private Equity Asia is one of Asia’s largest private alternative investment firms headquartered in Hong Kong and with assets under the management of $23 billion.
The transaction subject to closing adjustments is expected to complete within 90 days, subject to shareholder and other regulatory approvals.
“Our healthcare services business has steadily grown over the years,” Hinduja Global Solutions Chief Executive Officer Partha DeSarkar said in a press release.
“We reached a stage where we could recommend to the promoter to divest stake in this business to unlock value for all Hinduja Global Solutions stakeholders.”
The healthcare services vertical has over 20,000 employees across four geographies — India, the Philippines, the United States, and Jamaica — and recorded revenues of 400 million dollars in 2020-21.
After completing the transaction, Hinduja Global Solutions will transfer all client contracts, employees, and assets, including infrastructure related to the healthcare services business.
DeSarkar said the company would use the generated funds to invest for the organization’s future growth strategically.
“We see a long-term value and benefit to Hinduja Global Solutions in doing so. The company will continue to focus on aggressively expanding its consumer engagement solutions and digital businesses in line with our goal to transform itself into a digitally-enabled customer experience company,” DeSarkar said.
Hinduja Global Solutions is the business process management entity of Hinduja Group, one of India’s premier diversified and transnational conglomerates.
The group owns businesses in automotive, information technology, media, entertainment, and communications, banking and finance services, infrastructure project development, cybersecurity, oil and specialty chemicals, power, real estate, trading, and healthcare.
“We have been investing in the Technology Services sector for more than two decades and have long-admired Hinduja Global Solutions as a leading specialist Healthcare Services provider,” said Jimmy Mahtani, Managing Director, Baring Private Equity Asia.
“This will be our seventh investment in the sector and third in healthcare technology services following previous investments in CitiusTech and AGS Healthcare, and we continue to be excited about the digital transformation opportunity in the space.”
Barclays Bank Plc acted as the sole financial advisor to Hinduja Global Solutions on the transaction. Hinduja Global Solutions hires over 200,000 employees across 38 countries and has multi-billion dollar revenue, as per the company’s press release.
(With inputs from ANI)
Edited by Amrita Das and Praveen Pramod Tewari