The Times of India 20 August 2013
Baring Private Equity Partners Asia is set to buy the IT services firm Hexaware Technologies Ltd in a deal estimated at about $400 million, say bankers directly involved with the matter.
This could be the largest private equity deal in India’s $108-billion IT exports sector, topping the $330-million funding from Apax Partners to iGate Corp for the Patni Computer acquisition in 2011.
Baring Asia is in advanced talks to acquire the 42% stake held by promoter Atul Nishar and his family and private equity investor General Atlantic Partners. The acquirer will follow it up with a mandatory open offer for an additional 26% shares, pegging the size of the final deal between $350 and $400 million.
The transaction is expected to value Hexaware closer to $700 million (over Rs 4,200 crore), coming roughly at a 15-18% premium to the current market value. Baring Asia – managing assets worth $5 billion — provides expansion, restructuring and acquisition capital to middle market companies. Baring Asia MD and India head Jimmy Mahtani did not respond to phone calls; a Hexaware spokesperson called it speculation.