Personal fairness is a big deal. According to a person with firsthand knowledge of the situation, Baring Asia, which owns the software business Hexaware Applied Sciences, is likely to accept the Carlyle Group’s $3 billion offer for the city-based firm. The Carlyle Group, a Washington-based multinational private equity, asset management, and financial services firm with over $260 billion in property under management and a focus on personal equity, real estate, and personal credit score, is about to overtake bulge-bracket personal equity giants like Bain Capital, KKR & Co, and the Paris-based outsourcer AEON.
By mid-August, all of these bidders had filed firm offers. If the transaction goes through, it will be the largest in the home software programme businesses’ history.
PTI was informed by one of many financing bankers negotiating the sale and advising the sell-side on the condition of anonymity since the problem is personal and has yet to be resolved.“Baring is about to go together with the Carlyle Group’s $3 billion bid because it’s a lot increased than the opposite bids that are around $2.5 billion solely.”
He said that the purchase will most likely be completed shortly. Hexaware’s representative declined to comment, claiming that the subject is private.
A response to an email sent to Carlyle Asia’s headquarters on Saturday is expected.
It is well known that the IT/BPO sector has already witnessed two significant transaction announcements in 2021. Hinduja World Options, the Hinduja Group’s BPO subsidiary, announced the sale of its healthcare services business to Barings Personal Fairness Asia for $1.2 billion earlier this month to generate value for shareholders.
Late in April, American private equity firm Blackstone announced plans to invest an additional $2.8 billion in Mphasis, with Abu Dhabi Funding Authority, UC Investments, and other long-term traders as co-investors.
Hexaware was founded in Mumbai in 1990 by Atul Ok Nishar, who sold the company’s majority share to Baring PE Asia for Rs 1,687 crore in 2013, with an open offer for another 26 percent for Rs 1,058 crore, for a total of Rs 2,745 crore. He left the firm afterward but remained chairman. Baring has employed 100% of its workers from within the firm by November.
The promoters of Hong Kong-based Baring Personal Fairness Asia, Atul Nishar (27.7% stake) and GA World Investments (14.1%), sold their 41.8 percent stake for Rs 1,687 crore, followed by the PE fund making an open offer to buy the remaining 26 percent for Rs 135 per share, or Rs 1,058 crore, making it Baring’s largest investment in the region.
After acquiring Hexaware in November 2020, Baring placed the company up for sale in late April this year. Hexaware has developed into a multi-billion dollar multinational software and BPO services company and was a publicly listed corporation under Nishar’s leadership.
Nishar, a natural entrepreneur, founded Aptech, a computer training company, in 1985 and built it into the world’s largest worldwide IT training company, with over 2,400 centers in 52 countries.
Carlyle, KKR, Bain, and the French Teleperformance were among the round 10 bidders for Hexaware, a company that provides automation, cloud, and customer service-related technology to a range of industries, including banking, education, hospitality, and manufacturing, late last month.
With 37 sites in more than 30 countries and over 20,000 employees, the company’s sales increased by 6.5 percent to $845 million in 2020, while operating revenue increased by 24.4 percent to $152 million.
Mphasis had previously been sought unsuccessfully by Carlyle, which was eventually sold to Blackstone but failed due to a value mismatch.
Over the last 18 months, Carlyle has been particularly active in India, securing deals with the Piramal group, PNB Housing Finance, Sequent Scientific, and Bharti Airtel’s data center business.
Citius Tech, Coforge (formerly NIIT Applied Sciences), Virtusa, CMS, Wellbeing, AGS, and RBS Financial Institution are among the companies in Barings Asia’s Indian portfolio.