BENGALURU: Hinduja Global Solutions (HGS) has announced the sale of its healthcare services business to Barings Private Equity Asia for an enterprise value of 1.2 billion dollars (about Rs 8,906 crore).
The transaction subject to closing adjustments is expected to complete within 90 days, subject to shareholder and other regulatory approvals.
"Our healthcare services business has steadily grown over the years. We reached a stage where we could recommend to promoter to divest stake in this business to unlock value for all HGS stakeholders," said Global CEO Partha DeSarkar.
The healthcare services vertical has over 20,000 employees across four geographies -- India, the Philippines, the United States and Jamaica -- and recorded revenues of 400 million dollars in FY2021.
Post completion of the transaction, HGS will transfer all client contracts, employees, and assets including infrastructure related to the healthcare services business.
DeSarkar said the company will use the generated funds to strategically invest for future growth of organisation.
"We see a long-term value and benefit to HGS in doing so. The company will continue to focus on aggressively expanding its consumer engagement solutions and digital businesses in line with our goal to transform itself into a digitally-enabled customer experience company," he said.
HGS is the business process management entity of Hinduja Group, one of India's premier diversified and transnational conglomerates with over two lakh employees and presence across 38 countries.
Barclays Bank Plc acted as the sole financial advisor to HGS on the transaction.
Baring Private Equity Asia is one of Asia's largest private alternative investment firms with assets under management of 23 billion dollars.