Private equity player Bain Capital Partners today agreed to purchase arund 68 million common share of Gurgaon-based Genpact for $1 billion from investors General Atlantic and Oak Hill Capital Partners. Bain will pay $14.76 per share.
With this transaction Bain will hold 30% stake in Genpact and will nominate four directors to the company’s board. GA and Oak Hill continue to hold each 5% stake down from its 20%.
"We are excited about this transaction, which is hugely positive for all of our shareholders. Bain Capital's decision to invest in Genpact is a vote of confidence in the company and our business model, our differentiated service offerings, the value we deliver to our clients and the strength of the management team. Genpact will remain an independent public company, and I, along with our management team, will continue to pursue our strategic objectives," said N V 'Tiger' Tyagarajan, president and CEO of Genpact.
As part of the transaction, consistent with its long-term investment orientation, Bain Capital has agreed not to sell any Genpact shares for a period of two and a half years, subject to limited exceptions, and has agreed to a customary standstill.
Oak Hill and General Atlantic acquired 60% of the company, formerly known as GE Capital International Services, for $500 million in 2004.
"We are pleased to enter this important partnership with Genpact, which is the recognized market leader in the business process management and technology services industry," said Bain Capital.
Genpact delivers services from 18 countries around the world, including the US, where Genpact has more than 3,000 employees.
The transaction is expected to close in 2012 and is subject to payment of the special dividend, anti-trust and competition clearances and other customary closing conditions.
"General Atlantic and Oak Hill Capital have been terrific partners for more than seven years and have been incredibly helpful in supporting our transformation from a captive business process services operation to a diversified, global leader in business process management and technology services," said Robert Scott. "We are pleased that this was a successful partnership for General Atlantic and Oak Hill Capital, and we look forward to Genpact's next phase of growth."