Private equity major Blackstone-controlled outsourcing player Intelenet Global services is selling a 12.75% stake to British banking major Barclays Bank plc, said a release.
The deal, which is termed as a strategic partnership, involves Barclays taking a stake in Intelenet’s holding company SKR BPO Services. The financial details of the transaction were not disclosed but the deal involves infusion of fresh equity into the company.
The current transaction does not involve more business coming from Barclays to Intelenet as it is already the largest client of the firm. VCCircle was the first to report that Intelenet is close to an equity deal with a client.
Interestingly, both Barclays and Housing Development Finance Corp (HDFC), who sold their stake to Blackstone in a management buyout for $200 million, have bought back into the company. After the current transaction, Blackstone’s holding will come down to 66.25% while the management will have a 16.5% holding.
Blackstone held 80% stake while the remaining 20% was with the management after the MBO was concluded in 2007. HDFC now holds a 4.5% stake.
Morgan Stanley and Barclays Capital were the bankers for this deal.
A Reuters report added, quoting Intelenet CEO Susir Kumar, that the firm is eyeing acquisitions in the Philippines, China, Europe and India. It may also look at raising funds in an initial public offering in 1-2 years, the report added.
“Barclays investment in Intelenet is a testament to the best in class delivery capabilities of Intelenet, making it even more attractive to customers worldwide, including Blackstone’s portfolio companies. I am glad that Blackstone has already been able to add significant value to Intelenet, facilitating six Blackstone global portfolio companies as Intelenet customers,” said Akhil Gupta, Chairman of Blackstone India.
HDFC along with Tata Consulting Services (TCS) had set up Intelenet as a 50:50 joint venture back in 2000. But HDFC acquired TCS’ 50% stake in Intelenet for Rs 161 crore in July 2004 and sold it a month later to Barclays for Rs 164 crore.