Swedish private equity fund EQT is set to acquire Los Angeles-based healthcare BPO company GeBBS Healthcare Solutions, outbidding Hillhouse Investment by a whisker after intense negotiations that lasted for over a week, said two people aware of the development.
EQT has offered about $870 million to acquire 100% of GeBBS owned by homegrown PE firm ChrysCapital. The deal is likely to be signed in a few days, said the people cited.
ChrysCapital, which has already joined hands with EQT to acquire HDFC’s education NBFC Credila, preferred EQT’s bid though the two offers are almost similar, said the sources. ET reported last week that negotiations were ongoing.
Founded by Vijay Singh in 2005, GeBBS Healthcare Solutions is a leader in offshore healthcare administrative services.
GeBBS has 14,000 Employees
It employs 14,000 workers in 16 delivery centres across the globe and competes with companies like Wipro, IBM, Cognizant, Hewlett Packard, Quintiles IMS Holdings, AGS Health, Accenture, DSM Pharma and Xerox.
EQT also owns AGS Health, a medical revenue cycle management (RCM) company and a competitor of GeBBS. EQT Private Capital Asia (formerly known as Baring Private Equity Asia) had acquired AGS in 2019 for $320 million.
AGS Health’s team of 12,000 serves more than 150 customers spanning a variety of care settings and specialties.
EQT, ChrysCapital and Hillhouse didn’t respond to queries.
In June, a consortium led by EQT along with ChrysCapital had acquired a 90% stake in Credila Financial Services for ₹9,060 crore. ET was the first to report in April on ChrysCapital’s plan to sell GeBBS.
Jefferies and Avendus Capital are running the mandate for ChrysCapital.
ChrysCap acquired an 80% stake in GeBBS in 2018 for $140 million at a valuation of $175 million. Besides ChrysCapital, the founders are also selling their minority stake in this round, said sources. GeBBS posted revenue of about $200 million and ebitda of $50 million in FY24, said sources.
EQT Private Capital Asia has a wide exposure in the IT/ITeS sector globally.
EQT acquired the healthcare services business of Hinduja Global Solutions, the business process management entity of the Hinduja Group, for an enterprise value of ₹9,000 crore ($1.2 billion) in 2021 in one of the largest PE deals in the outsourcing space. Recently, EQT filed a draft red herring prospectus to list the BPO business, renamed Sagility.
Source: Economic Times