August 23, 2013 / 2:02 PM / 4 years ago

Baring to buy controlling stake in India's Hexaware for about $420 mln

Aug 23 (Reuters) - Baring Private Equity Asia has agreed to buy a controlling stake in Indian outsourcing services provider Hexaware Technologies Ltd for about $420 million in one of the largest deals in the country’s showpiece information technology sector.

Baring will buy Hexaware founders’ 27.7 percent stake and 14.1 percent from private equity firm General Atlantic for about $260 million, the company said in a statement issued on Friday.

Baring will then have to make a mandatory tender offer to minority shareholders of Hexaware for up to 26 percent of the company at 135 rupees a share, which would be worth about $160 million.

Hexaware shares ended up 1.8 percent before the transaction announcement at 120.75 Indian rupees ($1.87).

Hexaware develops software and provides business process outsourcing services to overseas clients. Its rivals in India’s $108 billion outsourcing industry include Infosys Ltd and Tata Consultancy Services Ltd. ($1 = 64.7400 Indian rupees) (Reporting by Sumeet Chatterjee in MUMBAI; editing by Keiron Henderson)

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