General Atlantic, a US-based private equity firm, is reportedly mulling a £500 million (€745 million; $976 million) flotation of Xchanging, a UK process outsourcing business it has owned since 2001.
General Atlantic has opened discussions with investment banks about a possible flotation that could value the business at about £500 million, according to the Financial Times.
However, it would not use the flotation as a full exit from the business, the report said.
Xchanging was set up in 2001 to handle the outsourced back-office processing of insurance market Lloyd’s of London, and has since added a broad range of clients including Deutsche Bank and BAE Systems. It has been one of the few Western BPO (business process outsourcing) success stories in a sector dominated by low-cost companies in India.
General Atlantic invested more than £100 million in the business through a series of investments.
Founded in 1980, General Atlantic has about $12 billion (€9.2 billion) under management and typically invests between $800 million and $1 billion each year.