Apax Partners, Carlyle Group, Baring Asia vies to takeover India's SourceHOV
Private equity majors Apax Partners, Carlyle Group and Baring Asia are reportedly among the bidders who have placed initial bids to acquire SourceHOV. SourceHOV is a business process outsourcing company jointly owned by Citigroup Venture Capital International and HOV Services.
According to The Times of India, the initial bids have valued SourceHOV at around USD1 billion. The company's two shareholders have mandated Morgan Stanley for the sale.
CVCI owns a majority stake of 65% in SourceHOV. HOV Services has 27.2% interest in the company and is controlled by serial tech entrepreneur Parvinder Chadha, the report said.
The Times of India said that SourceHOV reported a USD525 million revenue and an operating profit of USD150 million in the last fiscal year. Final valuation may be anywhere between USD800 million to USD1 billion.
SourceHOV was formed when India-based HOV Services acquired American company SourceCorp in 2010. HOV stake could now be valued at over USD250 million depending on the deal contours, the report said.