Mumbai, 6th January, 2022: The Hinduja Group’s business process management entity, Hinduja Global Solutions Limited (HGS) (Listed on NSE & BSE, India), announced today that it has completed the sale of its healthcare services business to wholly-owned subsidiaries of Betaine BV (‘Buyer’), funds affiliated with Baring Private Equity Asia (BPEA), one of the largest private alternative investment firms in Asia.
The transaction was based on an enterprise value of US$ 1,200 million, subject to closing adjustments, and resulted in inflows of US$ 1,088 million.
As part of the divestment, HGS has transferred all client contracts and assets, including infrastructure related to the healthcare services business, to the Buyer.
Over 29,000 employees from HGS across four geographies – the US, India, Jamaica, and the Philippines – will join the new organization, effective January 6, 2022.
As part of the Transition Services Agreement, the new healthcare organization will operate under the name “HGS Healthcare” for a period of up to 12 months from closing.
Explaining the strategic thought behind the deal, Y.M. Kale, Chairman, Hinduja Global Solutions, Said :
Chairman Kale further added :
Partha DeSarkar, HGS Global CEO, Said :
HGS’ Board of Directors in its meeting on January 6, 2022, has also declared :
- third interim dividend of Rs. 150/share in the nature of special dividend; and
- Recommendation of issue of new Equity Bonus Shares in the proportion of 1 Equity Share of Rs 10/- each for every 1 Equity Share of Rs 10/- each, subject to the approval of the Shareholders and other statutory and regulatory approvals, as may be necessary.
Post completion of the transaction, HGS will have around 18,800 employees and 34 delivery centers in the US, Canada, UK, Jamaica, Philippines, and India.
The company’s revenue run rate for Q4 FY2022 post divestment would be approximately US$105-US$110 million per quarter.
About Hinduja Global Solutions (HGS)
A global leader in optimizing the customer experience lifecycle, digital transformation, and business process management, HGS is helping its clients become more competitive every day.
HGS combines automation, analytics, and artificial intelligence with deep domain expertise focusing on digital customer experiences, back-office processing, contact centers, and HRO solutions.
Part of the multi-billion-dollar conglomerate Hinduja Group, HGS takes a “globally local” approach. Post the Healthcare divestment, HGS will have around 18,800 employees across 34 delivery centers in six countries, making a difference to some of the world’s leading brands across verticals.
For the year ended March 31, 2021, HGS had revenues of Rs. 55,889 million (US$ 753.9 million).