Bain Capital Partners LLC is in advanced talks to buy a $1.6 billion stake in Genpact Ltd. (G:US) from General Atlantic LLC and Oak Hill Capital Partners LP, according to a person with knowledge of the matter.
Bain Capital, the private-equity firm co-founded by U.S. presidential candidate Mitt Romney that manages almost $65 billion, may announce an agreement for the 40 percent stake as soon as this week, the person said, asking not to be identified because the talks are private. Apax Partners LLP had also bid for the asset, two people said.
Genpact, a computer-services company spun off by General Electric Co. (GE:US) in 2004, advanced (G:US) 18 percent this year through July 27, bringing its market value to $3.9 billion. The stake held by Oak Hill and General Atlantic is worth almost $1.6 billion. Genpact fell 0.3 percent to $17.54 at 10:34 a.m. in New York trading.
James David, a spokesman for Oak Hill, and Pat Hedley, a spokeswoman for General Atlantic, declined to comment. Benjamin Harding, a spokesman for Apax in London, and Alex Stanton, a spokesman for Bain, also declined to comment.
Genpact started operations in 1997 as an India-based unit of GE that assisted the U.S. company’s finance division. The Bermuda-based company still gets a quarter of revenue from GE, President NV “Tiger” Tyagarajan said last month.
Oak Hill and General Atlantic acquired 60 percent of the unit, formerly known as GE Capital International Services, for $500 million in 2004. They sold some of their investment in Genpact’s $494 million initial public offering in August 2007, data compiled by Bloomberg show.
Ranjit Pandit, head of investments for India at General Atlantic, said in October that the private-equity firm may sell stakes in information technology companies, without identifying them. General Atlantic also owns stakes in Indian technology companies including Hexaware Technologies Ltd. (HEXW) and Infotech Enterprises Ltd. (INFTC)
Bain Capital’s other investments in India include a stake in Hero Investments Pvt. and Lilliput Kidswear, according to its website.
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