Actis has purchased a stake worth $50 million in top LPO, Integreon. The LPO sector is considered to be a hot emerging sector. Watch out for this space, more deals are on their way.
Integreon, one of the Black Book's top LPOs, is seeing Private Equity investment of $50 million (Rs. 230 crores) from Actis, which invests primarily in Africa, China, India, Latin America, South and South East Asia.
The media release indicates that Actis now owns a ‘substantial minority stake’ in Integreon, with Ayala Corporation which invested in Integreon in 2006 continuing to hold a majority stake in the LPO. The investment also calls for two key players from the Actis team, J.M. Trivedi, who heads Actis’ South Asian Business and Gautam Radhakrishnan, a Director, will join Integreon’s board.
The Chief Operating Officer of Integreon, Lokendra Tomar had, as early as October ’09, disclosed to Bar & Bench that they were looking for PE investment of $100 million. Integreon has a wide client base and claims to have on its list, Microsoft, Clifford Chance, DLA Piper, Simmons, Osborne Clarke and a majority of top investment banks. Recently, it had also expanded its research base by acquiring Monitor Group’s captive research unit, Gail Research.
Liam Brown, Chief Executive Officer of Integreon added, “Actis’s long-established understanding of emerging markets, along with their experience investing in business services outsourcing, makes them an ideal partner for Integreon.” The COO of Integreon was not available for comment.
Recent reports had pegged that Actis was looking at acquiring a stake anywhere between 25 and 30 percent stake for about $60 million. At the lower end, a 30 percent stake at $50 million values Integreon at $167 million (Rs. 766 crore), while a 25 percent stake would value the company at $200 million (Rs. 918 crore).
In 2007, Pangea3 had closed a $7 million (28 Crores) in Series C funding, funded by Sequoia Capital India and had gotten on board Ambassador Frank G. Wisner and Brad Hildebrandt. Early last month, Intermediate Capital purchased a 47 percent stake in CPA Global for GBP 440 million (Rs. 3,183 crore). Considered to be a hot emerging sector, it is seeing an increasing amount of PE activity.