Hinduja Global Solutions – the business process management entity of the Hinduja group – has signed a definitive agreement with Baring Private Equity Asia to divest its healthcare services business.
The transaction, which is based on an enterprise value of $1.2 billion, is expected to be completed in 90 days, subject to shareholder and regulatory approvals.
The business caters to healthcare organisations, laboratories, durable medical equipment firms and pharmaceutical companies. It offers services such as enrolment and billing, claims adjudication and data management.
The vertical has over 20,000 employees across four geographies – India, Philippines, the US and Jamaica – and recorded a revenue of $400 million in financial year 2021.
Hinduja Global Solutions (HGS) will transfer all client contracts, employees and assets including infrastructure related to the healthcare business vertical.
HGS in a statement on Tuesday said that it will focus on strengthening its other businesses which include consumer engagement solutions, HGS Digital, HRO/Payroll businesses that support global brands. Services to healthcare clients delivered by HGS Digital and HRO/Payroll businesses will continue to remain with HGS.
“We have reached a stage where we could recommend to the promoter to divest stake in this business to unlock value for all HGS stakeholders. We will use the generated funds to strategically invest for the future growth of the organisation.,” said Partha DeSarkar, global CEO, HGS.
HGS has reported revenues of Rs 1550.5 crore in the first quarter of 2021-22, posting a year on year growth of 25 per cent.
