Serco to buy BPO firm Intelenet for Rs 2,772 crore | india | Hindustan Times
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Serco to buy BPO firm Intelenet for Rs 2,772 crore

india Updated: May 31, 2011 23:07 IST
HT Correspondent

UK's services and consulting firm Serco will acquire India's business process outsourcing (BPO) major Intelenet Global Services for £385 million (Rs 2,772 crore).

In an all cash deal that has been advised by Avendus and Barclays Capital, Serco will pay a total of up to £385 million through its debt facilities and will retain the existing management including CEO Susir Kumar.

"£335 million will be paid upfront and the remaining £50 million till December 2013 based on certain contingent elements," said Tom Riall, executive chairman of the new BPO business.

Kumar said the contingent elements are based on revenues generated by the company, which witnessed revenue of £170 million and an adjusted operating profit of £19 million in the financial year ended March 2011.

Intelenet has 32,000 employees and after the acquisition, it will have 40,000 employee.

Intelenet has undergone the acquisition for the second time in its 10-year history.

After having founded by TCS and HDFC in 2001, the company witnessed a management buy-out in 2007 resulting in the business being majority owned by Blackstone group together with Barclays, HDFC and Intelenet's management team. On Tuesday, Serco bought the full ownership.

HDFC held 4.7% in Intelenet and acquired it for R40 crore. The company has sold its stake for R90 crore. "We are happy with the deal and the management has created good value for the shareholders," said Keki Mistry, vice chairman & MD of HDFC Ltd.