After contract settlements and transactions, HGS will divest its healthcare business including client contracts, assets, and employees to Baring PE Asia.
Hinduja Global Solutions (HGS), the business process management arm of the Hinduja Group, is divesting its health care services business to funds affiliated with Baring Private Equity Asia (BPEA).
The Hinduja Group has signed definitive agreements with BPEA, one of the largest private alternative investment firms in Asia, for the same.
“The transaction 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 release.
After the completion of the transaction, HGS will transfer all client contracts, employees, and assets, including infrastructure related to the healthcare services business.
HGS’ healthcare services business supports payer, providers, laboratories, durable medical equipment firms and pharmaceutical companies with solutions that augment healthcare teams to deliver better patient, member, business and financial outcomes.
“The services cover the entire lifecycle of a payer organization, including member acquisition, enrollment and billing, benefit set-up, claims adjudication, provider credentialing and data management, payment integrity and financial recovery, grievance and appeals, provider and member engagement, prior authorizations, case management and population health management, and the various functions in the revenue cycle of a provider organization,” the release said.
The healthcare services business has over 20,000 employees across India, Philippines, US and Jamaica, and recorded revenue of about $400 million in FY2021.
HGS said it will focus on strengthening its consumer engagement solutions (CES), HGS Digital and HRO/ Payroll businesses that support many top global brands across its nine verticals. Services to healthcare clients delivered by the HGS Digital and HRO/ Payroll businesses will continue to be 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 organisation. We see a long-term value and benefit to HGS in doing so,” HGS Global CEO Partha DeSarkar said.
HGS’ net profit more than doubled to Rs 117 crore in June 2021 quarter from the year-ago period, while it’s operating revenue grew 25.5 per cent to Rs 1,550.5 crore.
Source: Apart from headline and a few edits, the news has been published from BusinessToday.in