Bain Capital buys Genpact stake $1 bn

Genpact is one of Indias top business process management companies.

Genpact,one of Indias top business process management companies has announced that private equity firm Bain Capital will buy a 30 per cent stake in it for $1 billion (approx Rs 5,500 crore). The market had been abuzz for a while on rumours about the deal.

We are pleased to enter this important partnership with Genpact,which is the recognised market leader in the business process management and technology services industry, US based Bain Capital said in a statement. NV Tiger Tyagarajan will continue as the president and CEO of Genpact post the deal,with Robert Scott retaining his position as chairman of the board. Under the terms of the transaction,South Asia Private Investments and other affiliates of Bain Capital will purchase approximately 6.8 crore shares of the company for $14.76 per share from General Atlantic and Oak Hill. The company listed in the New York stock exchange saw its share price rising by 5.95 per cent after the deal to $18.17.

Bain Capital,one of whose co-founders is US Presidential candidate Mitt Romney,will also name four directors to Genpacts board to replace the current GA and Oak Hill Capital directors.

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Genpact,meanwhile reported 56.6 per cent rise in net profit at $61.1 million for the second quarter of calendar year 2012. The BPO company major had shown a net profit of $39 million in the same period a year ago. As part of the transaction,Bain Capital has agreed not to sell any Genpact shares for a period of two and a half years,subject to limited exceptions.

Tyagarajan said,We are excited about this transaction,which is hugely positive for all of our shareholders. Bain Capitals decision to invest in Genpact is a vote of confidence in the company (and) Genpact will remain an independent public company.

The company services clients in 18 countries around the world,including the US,where Genpact has more than 3,000 employees.

The transaction is expected to close this calendar year and is subject to payment of the special dividend,anti-trust and competition clearances and other conditions.