Buy­out firms said to seek $500 mil­lion sale of out­sourcer Mi­nacs

The Pak Banker - - BUSINESS -

TOKYO: Mi­nacs Ltd., the out­sourc­ing com­pany with head­quar­ters in North Amer­ica and In­dia, has been put up for sale by its pri­vate-equity own­ers, peo­ple with knowl­edge of the mat­ter said. Asian buy­out firms Cap­i­tal Square Part­ners and CX Part­ners are seek­ing a val­u­a­tion of more than $500 mil­lion for Mi­nacs, the peo­ple said, ask­ing not to be iden­ti­fied as the in­for­ma­tion is pri­vate. Mi­nacs has an­nual earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­za­tion, or Ebitda, of about $50 mil­lion to $60 mil­lion, two of the peo­ple said. A deal would add to the $73.6 bil­lion of ac­qui­si­tions glob­ally in­volv­ing com­puter ser­vices com­pa­nies in the past 12 months, ac­cord­ing to data com­piled by Bloomberg. Mi­nacs, which traces its roots back to 1981, pro­vides tech­nol­ogy out­sourc­ing and busi­ness process out­sourc­ing with a work­force of about 21,000 across its 35 of­fices. The com­pany was formed in its cur­rent state in 2007, af­ter In­dian ty­coon Ku­mar Man­galam Birla merged lo­cal out­sourc­ing com­pany Tran­sWorks In­for­ma­tion Ser­vices Pvt. with North Amer­i­can cus­tomer re­la­tion­ship man­age­ment firm Mi­nacs World­wide Inc., ac­cord­ing to its web­site. Mi­nacs later grew through a com­bi­na­tion with PSI Data Sys­tems Ltd. in 2009. Aditya Birla Nuvo Ltd., backed by the In­dian bil­lion­aire, sold Mi­nacs to its cur­rent own­ers in a 2014 deal that val­ued the out­sourc­ing firm at $260 mil­lion in­clud­ing debt.

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