Bain Capital acquires 30% stake in Genpact

In a major development in the IT space, Bain Capital has bought 30% stake in Genpact. Sometimes back it was reported that Oak Hill and General Atlantic, stakeholders in Genpact were looking to exit. Finally, an official announcement has been made on Thursday to the Securities and Exchange Commission (SEC) by Genpact as the company released its quarterly numbers.

Oak Hill and General Atlantic held 40% stake in the company and Bain Capital has now bought out 30% of that from the stakeholders. The deal is expected to be completed later this year and Genpact will hold around 10% share. Hence, they will continue to remain shareholders, but Bain will end up acquiring approximately 68 million shares of the company.
The overall value of the deal is expected to be around USD 1 billion and it is one of the largest deals in the IT space right now. There is no clarity on any sort of open offer as such and it is a secondary deal that is happening, whereby Bain is going to buy 30% of the stake.
Although, more clarifications about the deal are awaited, it is learnt that once it is finalized, Bain will have a lock-in period of around two years.
The deal is being done at USD 14.76 a share and taking into consideration the volatile market condition, analysts were expecting the entire deal to be valued at around USD 800-900 million. However, it is close to a USD 1 billion deal and analysts believe, though this will provide a smooth partial exit for Oak Hill and General Atlantic, it will add another large investor, large private equity investor on Genpact's table.
Earlier, Oak Hill and General Atlantic had bought out stake from GE. As GE continues to remain a strong client for the company, this will be an additional bonus for Genpact's new as well as existing clients.