Hinduja Group’s enterprise course of administration entity, Hinduja Global Solutions Limited (HGS) stated Wednesday it has entered into definitive agreements to divest its Healthcare Services enterprise to funds affiliated with Baring Private Equity Asia (BPEA), at an enterprise worth of $1.2 bilion.
The deal is topic to closing changes, and is anticipated to finish inside 90 days, topic to shareholder and different regulatory approvals.
“The cash that will come in as a result of this transaction will be deployed to growing the business as well as looking at buying some capabilities…where capabilities are important for being able to do a good job of customer experience transformation. So that is a string of pearls acquisition strategy,” stated Partha DeSarkar, Global CEO, HGS, at a name to debate the divestment and first quarter outcomes.
The three areas the place HGS is trying to purchase functionality are the three A’s- analytics, synthetic intelligence and automation, he stated.
DeSarkar stated HGS is taking a look at altering the combo of the enterprise and making it extra technology-led. The different a part of the enterprise is about $350 million in dimension, and enhancing in profitability, he added.
The Healthcare Services vertical has over 20,000 workers throughout 4 geographies – India, the Philippines, the US and Jamaica – and recorded revenues of roughly $400 million in FY2021.
HGS stated it would deal with strengthening its Consumer Engagement Solutions (CES), HGS Digital and HRO/ Payroll companies that help a number of high world manufacturers throughout its 9 verticals.
Services to healthcare purchasers delivered by the HGS Digital and HRO/ Payroll companies will proceed to be a part of HGS’ portfolio.
“Our Healthcare Services business has steadily grown over the years. We reached a stage where we could recommend to promoter to divest stake in this business to unlock value for all HGS stakeholders. We will use the generated funds to strategically invest for the future growth of the organization. We see a long-term value and benefit to HGS in doing so”, stated DeSarkar in an announcement earlier.
HGS’ Healthcare Services enterprise helps payer, suppliers, laboratories, sturdy medical gear companies and pharmaceutical firms with options that increase purchasers’ healthcare groups to ship higher affected person, member, enterprise and monetary outcomes.
The companies cowl the complete lifecycle of a payer group, together with member acquisition, enrollment & billing, profit set-up, claims adjudication, supplier credentialing and knowledge administration, fee integrity and monetary restoration, grievance and appeals, supplier & member engagement, prior authorizations, case administration and inhabitants well being administration, and the varied features within the income cycle of a supplier group.
Post completion of the transaction, HGS will switch all consumer contracts, workers, and property, together with infrastructure associated to the Healthcare Services enterprise.
“We have been investing in the Technology Services sector for more than two decades and have long-admired HGS as a leading specialist Healthcare Services provider. We are excited to now have the opportunity to partner with CEO Ramesh Gopalan and his team to help take HGS’ Healthcare Services business to the next level as a new independent company. This will be our seventh investment in the sector and third in Healthcare Technology Services following previous investments in CitiusTech and AGS Healthcare, and we continue to be excited about the digital transformation opportunity in the space,” stated Jimmy Mahtani, MD, BPEA.
Barclays Bank Plc.acted as the only monetary advisor to HGS on the transaction.
