VCCircle

HOV Services, a Pune based BPO that services the financial and accounting sector, has made the largest acquisition of a BPO outside India. HOV has acquired US-based BPO Lason for $148 million (about Rs 660 crore), which will be funded by private equity funds and by debt.

The company has already raised $63 million (around Rs 280 crore) in equity from Merrill Lynch and Apollo Management, two private equity funds, while raising $125 million of debt.

The deal values Lason at about 3.5 times its revenues as of March 31, 2006. So far, the largest acquisition by an Indian BPO was that of Canada-based BPO Minacs Worldwide by Aditya Birla group-owned TransWorks for $125 milllion in June 2006. Besides, Infosys acquired Citibank's 23 per cent stake in Progeon last April for $115.13 million, while Wipro acquired Spectramind for around Rs 420 crore in 2002.

HOV went public only last September. Post acquisition, HIV will hit big league.