Finally, Genpact bags Citigroup’s captive BPO

After much negotiations and rumours, it has been unofficialy confirmed that India’s top BPO, Genpact has bought Citigroup Global Services beating its closest rival Firstsource Solutions, marking it the largest BPO deal in terms of transaction value.

The deal has been concluded for $630 million for a 90% stake much less than the earlier anticipated value of around $900 million. Though right through the round of negotations, Genpact always remained the favourite but things changed when Firstsource’s bid turned out to be $100 million more than of Genpact.

But Citi was willing to conclude the deal with Genpact as such it allowed it to match Firtsource bid. Finally, the deal was done at higher bid though with a higher equity dilution in favour of Genpact.

For Genpact, the deal would mean gaining a further stronghold in the BPO market and integrate the banking and financial operaions of Citi with its existing operations.

For Citigroup, it gets a large BPO player to bring in global scale and size and got itself a reasonable valuation for its BPO unit. via