27 February 2016 08:55:15 IST

Blackstone-backed BPO Intelenet eyes buys in US, UK for $134 m

Move will expand the firm’s global presence

Blackstone-backed business process outsourcer Intelenet Global Services is in talks to acquire two companies, one in the US and the other in the UK, for $122-134 million.

The acquisitions would help the BPO firm expand its presence across these geographies.

In the US, Intelenet is in discussions to buy a firm with a presence in the BFSI (Banking, Financial Service and Insurance) and healthcare space for $45-50 million. The deal, according to sources close to the development, is expected to be closed by June.

The sources declined to be identified as the talks are in private domain. When contacted, an Intelenet spokesman declined to comment.

In the UK, Intelenet is looking to take over a retail firm for £55-60 million ($77-84 million). This deal is expected to be closed by this year-end, the sources added.

“While the US buy would help expand the company’s footprint, the one in the UK could be a retail tuck-in acquisition,” one of the sources said.

The company has independent operations in UK, which were earlier conducted through its former owner Serco Plc.

Intelenet started out as 50:50 joint venture between HDFC and TCS in 2000, handling call centre operations for a range of sectors from financial services to travel. Then, in 2004, HDFC acquired TCS’ stake for an undisclosed amount and sold it to banking major Barclays.

In 2007, the management of Intelenet led a buyout, backed by PE firm Blackstone Group. In 2011, it was bought out by UK-based Serco Plc for ₹2,800 crore, making it the largest deal in the Indian BPO space. Last year, Blackstone paid ₹2,558 crore to buyout Intelenet, expecting an increase in outsourcing business.

Intelenet has followed a strategy of both organic and inorganic growth, and in 2005 acquired Sparsh BPO Services for an undisclosed sum. This paved the way for its entry into the domestic BPO sector.