CARLYLE FRONT-RUNNER TO BUY HEXAWARE TECH FROM BARING ASIA

The local-grown IT firm Hexaware Technologies is all set to be sold to the Washington based private equity and asset management giant Carlyle Group. The $3 billion bid is likely to be accepted by the Hong-Kong based equity giant Baring Asia.

INSIGHT INTO HEXAWARE TECHNOLOGIES

Hexaware was founded by Atul K Nishar in 1990 in Mumbai. The firm is a fast-growing service provider of IT and BPO services. As of June 2021, the company had a little over 19,000 employees. Atul had sold a majority stake to Baring PE Asia in 2013 for 1,687 crores with another 26 percent stake through an open offer valued at 1,058 crores. This open offer increased the stake of the PE firm to 92 percent. Later, the founder had exited his entire stake from the company but continues to remain as the chairman. 

Atul went on to make Hexaware a multi-million-dollar BPO service giant with consistently profitable quarters. It had reported a net quarter profit of 152 crores in June 2020. It was listed in 2001 during the IPO drove bull market in the country. Later in October 2020, Baring Asia decided to take Hexaware private and hold a 100 percent stake.

BIGGEST DEAL IN INDIAN SOFTWARE SPACE?

Since the firm got delisted, there were rumors of Hexaware to be sold by Baring Asia. The PE giant proving the rumors accurate invited bids for Hexaware Technologies valued at $2.5-3 billion dollars. The company was put on hold in April this year. Later in July, a total of 10 bids were shortlisted including Carlyle, KKR and Bain Capital.

Carlyle Group has offered the highest bid at $3 billion, much higher than other bidders. “It’s almost certain that the deal is happening” reported PTI. If this deal takes place, it will be the biggest deal in the domestic software service space.

Carlyle has been very active during the last few months, sealing deals with PNB and Airtel. With this deal, they(Carlyle) have now over $265 billion worth of assets under control.

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