Sovereign wealth fund GIC Singapore is joining Bain Capital in a deal to buy 30 per cent stake in the business process management and technology services company Genpact Ltd for $1 billion. GIC Singapore will invest $150 million in the transaction along with Bain Capital’s $849 million in Genpact, according to a filing.
The deal comes after the two firms co-invested $850 million in Hero MotoCorp, the world’s largest bike-maker in terms of volumes, last year.
NYSE-listed Genpact also said that it has appointed four Bain Capital representatives — Amit Chandra, David Humphrey, Mark Nunnelly and Mark Verdi – as its directors. While Chandra heads Bain’s operations in India, both Humphrey and Nunnelly are Boston-based managing directors at the private equity major. Verdi is a principal at Bain.
In August, Bain Capital had agreed to buy 68 million shares or 30 per cent stake in Genpact from General Atlantic (GA) and Oak Hill Capital Partners $14.76 per share. Now Bain Capital will buy 57.53 million shares, while GIC will take 10.16 million shares.
GIC’s stake in Genpact would amount to approximately 4.5 per cent. Shares of Genpact closed at $17.6, up 0.57 per cent on Friday, a nearly 20 per cent premium to Bain’s purchase price.
Genpact reported a 24 per cent jump in revenues to $903.1 million for the first six months of 2012 as compared to the same period last year, with net income up 32.6 per cent to $99.6 million.