Raman Roy’s Quatrro buys UK firm for $100 m
Raman Roy-promoted Quatrro BPO Solutions and DE Shaw, one of the leading hedge funds, have acquired UK-based Babel Media, a provider of specialist services to the online games and interactive entertainment industry, for around $100 million.
In a leveraged buyout, Quatrro has acquired around 65 per cent in the company and DE Shaw picked up a minority stake of over 10 per cent. The existing management and Algy Williams, the founding promoters of Babel Media, will own the balance equity in the company.
While refusing to divulge details, Raman Roy, chairman and managing director of Quatrro, said that the majority of funding has been achieved through debt financing by leveraging the balance sheet of the Babel Media, which is a profit making company.
As part of the transaction, Algy Williams will become non-executive director. Richard Leinfellner will take over as chief executive officer of the company.
Sources close to the transaction said Babel Media’s revenue for 2007 was around $30 million. The company, founded in 1999, employs over 500 and has offices in Brighton, Los Angeles, Montreal and New Delhi.
DE Shaw, which also acquired a minority stake in Quatrro, financed the debt portion of the deal.
“The acquisition is part of Quatrro’s blue ocean strategy of entering new domains and areas of outsourced services,” said Roy.