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Firstsource Solutions on sale: Warburg, Blackstone, Carlyle in running

Posted: 27 May 2008 01:05 AM CDT

ICICI Bank which has a 26.8% stake in BPO firm, Firstsource Solutions is looking to divest its stake as it feels it derives little synergy from the company.

Other major investors in Firstsource includes Temasek (which also has over 7% stake in ICICI), Metavante (US based banking solution firm) and Sequoia Capital/

As per Economic Times report, BPO firm WNS Holdings (owned by Warburg Pincus) may either merge or acquire Firstsource Solutions by buying out stakes held by ICICI Bank and other PE investors.

However, other PE firms such as Blackstone and Carlyle may play spoilsport and make a counter offer to the deal. As per current market price, the enterprise valuation is around $650 million.

Firstsource has been an active BPO firm by buying out firms globally and diversifying itself into different sectors such as BFSI, medical and telecom.

The reason big PE players are eyeing Indian BPO sector is there is still lot of scope for growth thus paving way for more revenues and consolidation.

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