Intelenet looks at $1 bn revenue by 2020

Business process outsourcing firm Intelenet Global Services aims to double its revenues to $1 billion by 2020 through acquisitions in digital technologies and on the back of deals from Blackstone portfolio companies.

The back office services provider, backed by private equity investor Blackstone Group LP, has renewed its interest in driving growth through acquisitions growth after it saw an improvement in valuation. Blackstone had re-purchased India-based BPO operations of the UK’s Serco Group Plc for nearly ~2,558 crore in 2015, four years after selling it.

Intelenet, which primarily caters to banking and financial services, travel and health care segments, generates nearly 70 per cent of its revenues from outside India.

The $430-million (nearly ~2,860 crore) BPO company said it has a better deal pipeline for the existing services for the next couple of years and beyond.

“The revenue aspiration that we have is a combination of organic and inorganic play... Our inorganic strategy has always been about buying companies which can build capabilities and in that process we will also add revenues, management teams. We will push for inorganic growth now that the valuation is getting to realistic numbers,” said Susir Kumar, executive chairman, Intelenet Global Services.

While Intelenet expects to drive a significant part of growth through acquiring firms in areas like robotics, automation and artificial intelligence, over the next two-three years nearly $100 million worth of deals are expected to come from companies where Blackstone has invested.