Recap Partners to acquire Chennai-based HOV Service for Rs 950 crore
New York-based REcap Partners-LLC has agreed to acquire Chennai-based business process outsourcing (BPO) firm HOV Services along with its two units operational in Beijing and Hong Kong for total consideration of Rs 950 crore.
In February 2007, HOV Services came in headlines when it acquired US-based Lason for $148 million. The deal was considered as the one of the biggest acquisitions in the BPO segment.
In an official release, HOV Services has informed that it has received an offer from REcap Partners-LLC to purchase all assets (including shares) owned by HOV Services and LLC (a key subsidiary of the company incorporated in Nevada, USA), the entire share capital in HOV Services (Beijing) presently held by HOVS Holdings and all operating assets used by HOVS and HOVS Beijing-owned by the company.
HOV Services Limited, together with its subsidiaries, provides business process outsourcing services in North America, India, China, and Mexico. The company's customers include over 50% of FORTUNE 100® companies across key verticals such as financial services, telecommunications, healthcare, insurance, construction, publishing, finance and accounting and government.
In a volatile session, the company stock ended the day at Rs 58 on BSE, down 10% compared to its previous close of Rs 64.