UK banking group Barclays is selling Intelenet, the Indian BPO joint venture it operates with Housing Development Finance Corporation (HDFC), in a management buy out backed by US-based Blackstone. Financial terms of the deal were not released.
Mumbai-based Intelenet provides BPO services to over 60 local and international clients from 18 locations across India and employs over 17,000 staff in India and overseas.
The unit was originally established as a 50:50 joint venture between Tata Consultancy Services and HDFC in 2000. HDFC later acquired TCS' stake in the venture and Barclays Bank purchased a 50% stake in the company in 2004 for £19 million.
Barclays and HDFC are selling the business to SKR BPO Services, a buyout vehicle set up by Intelenet management and Blackstone GVP Capital Partners Mauritius.
Although it is selling its interest in Intelenet, Barclays says it plans to work with the unit to establish a new wholly-owned BPO operation in India.
Following closing of the transaction, Intelenet will continue to provide offshore outsourcing services to Barclays. Intelenet will also assist the bank in setting up a new offshore centre in India.
David Skillen, global operations principal, Barclays, says: "We are pleased that we have sold our stake to the Intelenet management. We look forward to working with them to establish our BPO operation in India and in the continued provision of services to Barclays."