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(News) Genpact Ltd agreed to buy Headstrong Corp for $550 million
Genpact to buy Headstrong Corporation for $550 million
Outsourcer Genpact Ltd agreed to buy Headstrong Corp, a provider of consulting and IT services, for $550 million in cash to strengthen its capital markets business.The business process and technology services provider, which in February forecast disappointing 2011 revenue growth of 10-13%, expects Headstrong to have a long-term growth rate of over 20% a year, it said. Headstrong, which was founded in 1981 and has centers in India and Manila with a global headcount of 3,700, generated 2010 revenue of about $217 million, Genpact said in a statement.
The deal would be funded through existing cash and financing. Genpact had cash and cash equivalents of $404 million at the end of 2010.Genpact was started in 1997 as the India-based business process services unit of GE Capital, General Electric Co's financial services business. GE, which spun off Genpact in 2005, remains Genpact's largest client and contributed 38% to its 2010 revenue.Shares of Genpact, which have shed nearly a fifth of their value over the last six months, closed at $14.76 on Tuesday on the New York Stock Exchange.
Courtesy: The Times of India