CVCI-backed BPO firm SourceHOV merging with US-based BancTec

Citi Venture Capital International (CVCI)-backed BPO firm SourceHOV Holdings Inc, part owned by listed firm HOV Services Ltd (HOVS), is merging with US-based BancTec, which is controlled by buyout major HandsOn, as per a stock market disclosure.

Chennai-based HOVS, which holds 26.2 per cent stake in SourceHOV Holdings, is also a portfolio firm of HandsOn.

US-based SourceHOV was formed three years ago with the merger of HOV Services LLC, an indirect subsidiary of HOVS, with Sourcecorp, Inc., a portfolio company of Apollo Global.

Last year in March, CVCI invested in the SourceHOV and bought all the stake of affiliates of Apollo Global Management, LLC and other unnamed minority shareholders in SourceHOV.

As part of the latest deal, BancTec shareholders will get shares in SourceHOV.

"SourceHOV will use a new credit facility to refinance existing indebtedness, redeem certain existing SourceHOV equity holders and provide for working capital," HOVS said in regulatory filing.

It is not clear if CVCI is one/one of the shareholders whose shares are being redeemed as par of the new credit line taken by SourceHOV.

An email query to HOVS spokesperson for clarity on the transaction, did not immediately elicit a response.

Founded in 1970, BancTec provides financial transaction automation and document management services. The firm employs over 4,000 people across 35 offices and operating centres globally.

In Feb this year, HandsOn, which manages several global buyout funds and has investments in business process services, entered into a definitive agreement to acquire BancTec.

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