Blackstone in £385m BPO exit

The listed firm has agreed to sell Mumbai-headquartered business process outsourcing firm Intelenet, whose customers include Barclays, State Bank of India and Travelport.

The Blackstone Group has agreed to sell Mumbai-headquartered business process outsourcing firm Intelenet to international service company Serco for £385 million (€440 million; $633 million).

Intelenet provides middle and back office services to businesses primarily in the financial services, travel, healthcare and telecom sectors, and generated revenues of £170 million for the year ending 31 March 2011.  The company is expected to achieve annual revenue growth of 10 percent to 15 percent, according to a Serco statement. Intelenet’s customers include Barclays, State Bank of India and Travelport. 

Blackstone invested a reported $200 million in the company in 2007.

In September, Blackstone chairman and chief executive officer Stephen Schwarzman reaffirmed his commitment to investing in India at an event in New York. “Our firm is very active in India,” Schwarzman said while accepting a humanitarian award at the event. “We own 12 companies and have invested over $1.2 billion in their country, with a lot more coming.”

Blackstone reported strong earnings in the first quarter driven by increases in all investment funds, Schwarzman said during an earnings call last month. The firm reported an increase in economic net income of 58 percent to $568 million, compared to $360 million in the same time period last year. Total assets under management increased to $150 billion and the firm had about $32 billion of uninvested capital across all funds at the end of the first quarter.