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Bain Capital Partners LLC agreed to buy a stake in outsourcing company Genpact Ltd. (G) from General Atlantic LLC and Oak Hill Capital Partners LP for $1 billion.
Bain, a private-equity firm, is buying about 30 percent of Genpact’s stock outstanding for $14.76 a share, according to a statement. The transaction is expected to close this year after a special dividend of $2.24 a share to all shareholders, including General Atlantic and Oak Hill.
“Bain Capital has a long-term perspective, which is critical to building value, particularly in a company like ours,” Chief Executive Officer N.V. “Tiger” Tyagarajan said in the statement. “We look forward to working with Bain Capital as we continue to make enterprises around the world run better by continuously improving their business processes.”
Genpact began operations in 1997 as an India-based computer-services unit of General Electric Co. (GE) that assisted the U.S. company’s finance division. The Bermuda-based company still gets a quarter of revenue from GE, Tyagarajan said last month.
Oak Hill and General Atlantic acquired 60 percent of the company, formerly known as GE Capital International Services, for $500 million in 2004.
When the deal closes, Bain will name four people to Genpact’s board, replacing the Oak Hill and General Atlantic directors. The selling shareholders will still own about 10 percent of Genpact’s shares outstanding after the transaction. Bain, a Boston-based firm that manages almost $65 billion, has agreed not to sell any Genpact shares for two and a half years, according to the statement.
Tyagarajan will remain CEO, and Robert Scott, a former Morgan Stanley executive, will stay on as chairman.
Genpact, which handles technology services and other business tasks, operates from 18 countries, according to the statement. The company has more than 3,000 employees in the U.S., representing about 5 percent of its total (G) as of the end of 2011.
Genpact, which held its initial public offering in 2007, declined (G) 1.6 percent to $17.15 at the close in New York. The stock has advanced 15 percent this year.
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