Published on Fri, Jun 13, 2008 at 09:25 | Source : CNBC-TV18
Updated at Fri, Jun 13, 2008 at 18:19
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Genpact, EXL on hunt for small BPOs
After captive BPOs were put on the block, it is the turn of several small and mid-sized domestic BPOs to consolidate. Genpact and EXL might have lost the race for Aviva's captive BPO, but they are still on the prowl. Both companies have now set their eyes on the domestic market and are looking at several options.
It's M&A season in the IT and ITES space. After captive BPOs were put on the block it is the turn of several small and mid-sized domestic BPOs to consolidate. Genpact and EXLmight have lost the race for Aviva's captive BPO, but they are still on the prowl. Both companies have now set their eyes on the domestic market and are looking at several options. Genpact is said to be looking for local companies specially in the BFSI segment.
EXL says inorganic growth is the preferred option for the company in the domestic market. The company is also talking to several LPOs and is optimistic about signing a deal. EXL, which has nine delivery centers, plans to enter tier II cities like Chandigarh and Jaipur within the next 12 months.
Apart from Genpact and EXL, IT firm Infovision is also talking to private equity firms. The company was initially looking for a capital infusion for expansion but is now looking at divesting majority stake. The company, with an employee strength of 11,000 has been valued at more than USD 100 million and is being advised by Avendus Advisors.
According to Grant Thornton, in 2007, as many as 59 pure merger and acquisition deals took place in the domestic IT and ITES space, together valued at USD 370 million. This fugure is expected to double in 2008.
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