What You Should Know:
– ChrysCapital, India’s largest homegrown private equity (PE) firm, is reportedly exploring the sale of GeBBS Healthcare Solutions, a Los Angeles-based healthcare business process outsourcing (BPO) company.
– This comes roughly six years after ChrysCapital acquired GeBBS in 2018. The potential $1 billion valuation reflects a significant increase from the acquisition price in 2018. This transaction could signal ChrysCapital’s strategy of entering a business, nurturing its growth, and then exiting at a healthy profit.
Potential Valuation and Gain for ChrysCapital
Multiple sources familiar with the development suggest a potential valuation of $800M to $1B for GeBBS. This would represent a significant return on investment for ChrysCapital. The firm acquired an 80% stake in GeBBS for $140 million in 2018, valuing the entire company at $175M. A sale at the reported valuation range would translate to a substantial profit for ChrysCapital.
Active M&A Landscape in Healthcare BPO
The potential sale of GeBBS highlights the active mergers and acquisitions (M&A) landscape within the Indian healthcare BPO space. Recent years have seen several big-ticket deals in this sector. Notably, EQT acquired the healthcare services arm of Hinduja Global Solutions (HGS) for ₹9,000 crore ($1.2B) in 2021, marking one of the largest PE deals in the Indian outsourcing industry. Interestingly, EQT itself is currently seeking to offload a significant minority stake in this BPO business, now known as Sagility.
