Private equity player Citigroup Venture Capital (CVC) is learnt to have entered the race for buying Citigroup’s BPO arm — Citigroup Global Services. Sources in the industry say BPO majors Genpact and WNS Holdings and PE firm CVC are the final three players who are interested in the transaction. While NYSE-listed Genpact is believed to be as the front-runner in the deal, CVC may benefit from being part of the Citigroup family.
Citigroup has put its captive BPO outfit, Citigroup Global Services, on the block for some time but valuation of the deal and the lack of commitment of future business from Citigroup is making the transaction protracted.
While valuation was earlier learnt to be hovering around $750-800 million, sources say it has now come down to $600 million. The captive is expected to report revenues of about $200 million this year. This means a valuation of three times its revenues.
Read more in The Economic Times article.
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