Sponsor Bain acquires 30% stake in Genpact for $1bn

US private equity firm Bain Capital LLC has agreed to buy some USD1bn (EUR815.7m) worth of common shares in Bermuda-based business process management (BPM) company Genpact Ltd (NYSE:G) from certain existing sponsors, the target announced.

As part of the agreement, Bain’s South Asia Private Investments and other units will purchase around 68m shares in Genpact, equal to a 30% stake, from fellow buyout firms General Atlantic LLC and Oak Hill Capital Partners LP for USD14.76 apiece. The vendors will then own a combined stake of about 10% in the Bermuda-based company.

The share purchase will be implemented after Genpact distributes its special dividend of USD2.24 a share to all stockholders and its closing is expected to occur this year. The transaction is also pending anti-trust and competition approvals.

Following completion, Bain will appoint four directors to Genpact’s board which will substitute the current GA and Oak Hill representatives. The private equity investor has agreed not to sell any of the acquired shares for a period of two and a half years.

Morgan Stanley (NYSE:MS), Citigroup Inc (NYSE:C) and Cravath, Swaine & Moore LLP are advising Genpact, while JP Morgan (NYSE:JPM) and Ropes & Gray LLP are consulting Bain.