Hinduja Global Solutions completes the sale of its healthcare unit to Baring Private Equity
: The Hinduja group’s business process management entity, Hinduja Global Solutions Limited, announced on Thursday that it has completed the sale of its healthcare services business to wholly owned subsidiaries of Betaine BV (“Buyer”), affiliated funds at Baring Private Equity Asia (BPEA), one of the largest private alternative investment firms in Asia. The transaction was based on an enterprise value of $ 1,200 million, subject to closing adjustments, and resulted in an inflow of $ 1,088 million.
The deal was originally announced in August 2021 and has now been finalized. As part of the sale, HGS transferred all customer contracts and assets, including infrastructure related to the health services business, to the Purchaser. More than 29,000 HGS employees in four geographies – the United States, India, Jamaica and the Philippines – will join the new organization effective January 6, 2022.
As part of the Transition Services Agreement, the new healthcare organization will operate under the name “HGS Healthcare” for 12 months from closing.
The strategic move
Explaining the strategic thinking behind the deal, YM Kale, President of Hinduja Global Solutions, said, “This divestiture helps HGS unleash value and makes capital available to grow the business of all other verticals and divisions. Now is the right time to refresh HGS’s value proposition and evolve as a full digital and CX service partner for customers.
President Kale added, “Completing the transaction unleashes significant shareholder value and is recognition of the innovative work HGS has done over the past two decades to develop its domain capabilities. The Board approved an interim / special dividend of 150 / share and a free allocation of 1 share for each share held, subject to the necessary approvals. ”
Also Read: CCI Approves Acquisition of Global Healthcare BPO Services from Hinduja Global Solutions by Betaine BV
Partha DeSarkar, CEO of HGS Global, said: “HGS will now move towards building its practice of transforming the digital customer experience, focusing on the triple A’s of automation, analytics and artificial intelligence, to create industry-specific solutions for the world’s largest brands that HGS offers. The acquisition of the talents required for the above sectors is being planned. Over the past two years, HGS has significantly expanded its presence in the UK.
New brand identity
HGS recently unveiled a new brand identity aligned with its vision to be a digitally-led Customer Experience Transformation (CX) organization. This new brand identity represents HGS’s focus on continuously creating better customer experiences, stronger employee engagement and more rewarding results for investors.
HGS will use the funds generated by the divestment to strategically invest in strengthening its technological capabilities for the future growth of the organization. HGS worked with its board of directors to chart this new course of technological leadership. HGS is also exploring several acquisition candidates for the inorganic growth of its business. ”
The HGS Board of Directors, at its Thursday meeting, also declared a third interim dividend of 150 / share in the form of a special dividend, and recommended the issuance of new free participating shares in the proportion of 1 participation share of 10 each. for each participating share of 10 each, subject to shareholder approval and other statutory and regulatory approvals, as applicable.
After the transaction closes, HGS will have approximately 18,800 employees and 34 delivery centers in the United States, Canada, United Kingdom, Jamaica, Philippines and India. The company’s revenue rate for the fourth quarter of fiscal 2022 after the divestiture would be approximately $ 105-110 million per quarter.