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| Genpact Headstrong |
The business process and technology services provider, which in February forecast disappointing 2011 revenue growth of 10-13%, expects Headstrong to have a long-term growth rate of over 20% a year, it said.
Genpact sees the deal, expected to close by May 31, adding to 2011 earnings. Genpact Headstrong
Headstrong, which was founded in 1981 and has centers in India and Manilawith a global headcount of 3,700, generated 2010 revenue of about $217 million, Genpact said in a statement.
Headstrong focuses on financial services and helps clients manage customer relationships and business processes like help desks.
The deal would be funded through existing cash and financing. Genpact had cash and cash equivalents of $404 million at the end of 2010.
Genpact was started in 1997 as the India-based business process services unit of GE Capital, General Electric Co's financial services business. GE, which spun off Genpact in 2005, remains Genpact's largest client and contributed 38% to its 2010 revenue.
Citigroup Global Markets Inc and UBS Securities acted as the financial advisers to Genpact in this transaction while Cravath, Swaine & Moore were outside legal counsel.
Shares of Genpact, which have shed nearly a fifth of their value over the last six months, closed at $14.76 on Tuesday on the New York Stock Exchange.
Sources: http://timesofindia.indiatimes.com
