Hinduja Global Solutions to offload healthcare services business to BPEA

Hinduja Global Solutions (HGS), the business process management entity of the Hinduja Group, has agreed to offload its healthcare services business to funds affiliated with Baring Private Equity Asia (BPEA) for $1.2 billion.

The healthcare services business involved in the deal supports payer, laboratories, providers, durable medical equipment companies, and pharma companies with solutions that supplement clients’ healthcare teams for providing better member, patient, business, and financial outcomes.

The services cover the full lifecycle of a payer organization. These include member acquisition, benefit set-up, enrollment and billing, claims adjudication, payment integrity and financial recovery, provider credentialing and data management, grievance and appeals, prior authorizations, provider and member engagement, population health management, case management, and the other functions in the revenue cycle of a provider organization.

Hinduja Global Solutions healthcare services unit has more than 20,000 employees in India, the US, the Philippines, and Jamaica. For FY2021, the business earned revenues of around $400 million.

Hinduja Global Solutions to offload healthcare services business to Baring Private Equity Asia for $1.2bn

Partha DeSarkar — Global CEO of Hinduja Global Solutions said: “Our Healthcare Services business has steadily grown over the years. We reached a stage where we could recommend to promoter to divest stake in this business to unlock value for all HGS stakeholders.

“We will use the generated funds to strategically invest for the future growth of the organization.

“We see a long-term value and benefit to HGS in doing so. HGS will continue to focus on aggressively expanding its CES and Digital businesses in line with our goal to transform itself into a ‘digitally-enabled customer experience (CX) company.”

After the closing of the deal, Hinduja Global Solutions will transfer all client contracts, workforce, and assets including infrastructure associated the healthcare services business to Baring Private Equity Asia.

Jimmy Mahtani — Managing Director of Baring Private Equity Asia said: “We have been investing in the Technology Services sector for more than two decades and have long-admired HGS as a leading specialist Healthcare Services provider. We are excited to now have the opportunity to partner with CEO Ramesh Gopalan and his team to help take HGS’ Healthcare Services business to the next level as a new independent company.

“This will be our seventh investment in the sector and third in Healthcare Technology Services following previous investments in CitiusTech and AGS Healthcare, and we continue to be excited about the digital transformation opportunity in the space.”