Baring set to buy controlling stake in Hinduja Global Unit

Mumbai: Baring Private Equity Asia is set to pick up a controlling stake in the healthcare outsourcing division of Hinduja Global Solutions (HGS) in a deal valuing the business vertical at around $1 billion (₹7,500 crore).

Baring was competing with rival private equity firm Everstone Capital in the penultimate round.

A formal announcement regarding the share sale is expected soon, people briefed on the matter said.

Baring Private Equity Asia and Everstone Capital emerged as frontrunners to acquire a controlling stake in the healthcare outsourcing division of Hinduja Global Solutions, ET first reported on May 6. The consortium of Everstone Capital and Goldman Sachs opted to back out of discussions last week.

Late last year, listed HGS started a formal process to hive off its healthcare BPO, a wholly owned subsidiary of the company, and mandated Barclays to find a buyer. The process had seen interest from bulge-bracket funds including Blackstone Group, the Carlyle Group, Apax Partners and Advent International.
Shares in HGS quadrupled over the past year, significantly outperforming the broader markets.

The worldwide healthcare BPO market is expected to cross $400 billion by 2027, growing at a CAGR of 11%. Globally, HGS competes with Wipro, IBM, Cognizant, Hewlett Packard, Quintiles IMS Holdings, Accenture, GeBBS Healthcare, DSM Pharma, Xerox Corp and others.
A Baring Asia spokesperson declined to comment. A Hinduja Global spokesperson said, "In view of changing market dynamics and the need to enhance profitability, the HGS board of directors had asked for a review of our existing portfolio of businesses to unlock higher value."

HGS divested its domestic India business in January 2020.

Started as Ashok Leyland Information Technology in 1993 to provide IT services, the company merged with Hinduja Finance Corp. to form HGS in 2000.