HGS to divest healthcare services business to Baring PE

HGS has also seen its net profit more than double to Rs 117 crore, while operating revenues grew 25.5 per cent to Rs 1,550.5 crore in the June 2021 quarter from the year-ago period.

“The transaction (with BPEA) based on enterprise value of $1,200 million, subject to closing adjustments, is expected to complete within 90 days, subject to shareholder and other regulatory approvals,” HGS said in a filing late Monday night.

Post-completion of this transaction, HGS will transfer all client contracts, employees, and assets, including infrastructure related to the healthcare services business.

It has over 20,000 employees across four geographies – India, the Philippines, the US and Jamaica – and recorded revenues of approximately $400 million in FY2021, the filing said.

“We reached a stage where we could recommend to promoter to divest stake in this business to unlock value for all HGS stakeholders,” HGS Global CEO Partha DeSarkar said.