Indian private equity firm CX Partners and Singapore-based investment firm Capital Square Partners have agreed to sell India- and North America-based business process outsourcing firm The Minacs Group Inc. to US-based Synnex Corporation for $420 million (Rs 2,800 crore).
The transaction is likely to close in the third quarter of 2016, subject to regulatory requirements and customary closing conditions, Synnex and Minacs said in a statement. Until the transaction is completed, the companies will continue to operate independently.
This is the second ownership change for Minacs in two-and-a-half years. In January 2014, Aditya Birla Group sold Minacs to its current owners for $260 million (Rs 1,600 crore) as the diversified Indian conglomerate exited the BPO business.
Anil Bhalla, CEO of Minacs, will stay with the combined company and join Concentrix’ senior executive staff.
Synnex said it will integrate Minacs into its Concentrix business segment. The transaction is aimed at strengthening Concentrix’s automotive industry vertical and accelerate marketing optimization and Internet of Things solutions with Minacs’ proprietary technology, it added.
“We believe this acquisition will enhance Concentrix’ position as global leader in business services,†said Kevin Murai, CEO and president at Synnex. “This transaction is also in line with our stated goals of margin expansion and diversification of our revenue.â€
With corporate offices in Bangalore, Michigan (US) and Ontario (Canada), Minacs has around 21,000 employees across 35 locations in the world. It is one of India's largest BPO firms and caters to clients in the manufacturing, retail, telecom, technology, media and entertainment, banking, insurance and healthcare sectors.
Capital Square is a private investment firm floated to deploy principal capital of Singapore-based entrepreneur-turned-investors Sanjay Chakrabarty and Aparup Sengupta. Chakrabarty was the founder and director of MobiApps. CX Partners was founded in 2009 by Ajay Relan, who was previously the head of private equity venture in India for Citibank.
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