Blackstone Agrees to Acquire Majority of Serco’s Private Sector BPO Operations
September 16 2015 - 9:39AM
Business Wire
to be revived and rebranded as
Intelenet
Private equity funds managed by Blackstone today entered into a
definitive agreement with Serco Group Plc to buy the majority of
its private sector Business Process Outsourcing (‘BPO’) operations,
the main element of which is the former Intelenet business, for a
consideration of £250m, approximately INR 2,558 crores. The
enterprise value of this deal represents the largest acquisition by
Blackstone in India.
The business has expected annual revenues of approximately £235m
(INR 2,405 crores) for this year. The company has 51,000 full time
employees across 67 centres in 8 countries. The private sector BPO
business provides a range of middle and back office services, and
has a strong customer base of international organisations,
predominantly across the financial services, insurance, telecoms,
travel and healthcare sectors.
Post the change in ownership, the business will be rebranded and
revived as “Intelenet Global Services.” The sale is expected to
complete in the coming months, subject to customary closing
conditions and approvals.
Amit Dixit, Senior Managing Director and Co-Head of Private
Equity in India at Blackstone, said: “We are excited to embark
on the Intelenet 2.0 journey and delighted to once again partner
with the company’s management team. With a market leading position
in the offshore banking and travel/hospitality verticals and #1
position in domestic India BPO, Intelenet has the core platform to
capitalize on future growth opportunities. We plan to replicate the
same formula for success -- energize the employee base, focus on
world-class operations to drive customer satisfaction, provide
multi-geography and multi-language delivery, and enhance the
company's capabilities in target segments organically and
inorganically.”
Susir Kumar, Chief Executive Officer, Serco Global Services,
said, “We are delighted to have another opportunity to partner with
Blackstone. Serco was a good owner for Intelenet and had
significantly grown the BPO business in its tenure. The business
however was sold because of change in strategy of Serco which led
to the sale of its private sector BPO business. We have retained
almost all of our clients and key staff that we have had since our
inception and look forward continuing to add value to them. We will
shortly be working on a strategy that will enable us to
significantly enhance our offering to existing customers and
prospects. With the present management team continuing, this
represents a seamless change of ownership and business as usual for
all our stakeholders.”
Under the terms of the transaction, the business will continue
to be led by Susir Kumar, and the existing management team, which
has been instrumental in the growth of the company.
About Blackstone
Blackstone is one of the world’s leading investment firms. We
seek to create positive economic impact and long-term value for our
investors, the companies we invest in, and the communities in which
we work. We do this by using extraordinary people and flexible
capital to help companies solve problems. Our asset management
businesses, with over $330 billion in assets under management,
include investment vehicles focused on private equity, real estate,
public debt and equity, non-investment grade credit, real assets,
and secondary funds, all on a global basis. Blackstone has been
investing in India since 2005 and has made investments over $3
billion in private equity and real estate. Blackstone also
provides various financial advisory services, including financial
and strategic advisory, restructuring and reorganization advisory,
and fund placement services. Further information is available
at www.blackstone.com. Follow us on
Twitter @Blackstone.
About Serco
Serco is a leading provider of public services. Our customers
are governments or others operating in the public sector. We gain
scale, expertise and diversification by operating internationally
across five sectors and four geographies: Defence, Justice &
Immigration, Transport, Health and Citizen Services, delivered in
UK & Europe, North America, Asia Pacific and the Middle
East.
More information can be found at www.serco.com
About Serco’s Offshore Private Sector BPO business (the
business being sold by Serco to Blackstone)
Serco’s offshore private sector BPO business comprises primarily
the offshore and Indian private sector BPO business of Serco with
annual revenues of approximately £235m. It has 51,000 employees
operating across 67 centres around 8 countries in the world. 70% of
the business comprises of the offshore private sector business
where services are provided to clients in US, India and middle-east
from its centres at India and Philippines and 30% of the business
comprises of services it provides to the Indian domestic market.
Most of the work that the business does include end to end back and
middle office services to clients in Banking & Financial
Services, Telecom, Retail, Healthcare, Travel, e-commerce and
Utilities.
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version on businesswire.com: http://www.businesswire.com/news/home/20150916005967/en/
BlackstoneAndrew Dowler/Rebecca Flower, +44 (0) 20 7451
4275andrew.dowler@blackstone.comorSerco Global ServicesNaini Roy
Choudhury, +91 9820250939naini.choudhury@serco.comorH+K
StrategiesAnita Bhoir, +91
9930390055Anita.Bhoir@hkstrategies.comorText 100 Global
CommunicationsVarsha Chawla, +91
9820192294VarshaC@text100.co.in
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