Carlyle Bets on Outsourcing in China With VXI Global Deal
August 04 2016 - 8:40AM
Dow Jones News
U.S. private-equity giant Carlyle Group LP is making a big bet
that the future of the outsourcing industry, long associated with
India, will be in China.
Carlyle has reached a deal to buy 70% of China-focused
outsourcing business VXI Global Solutions LLC in a deal that values
the company at around $1 billion, according to people familiar with
the situation. VXI Global's founders will continue to own a
minority stake in the business, the people said.
Carlyle reached the deal after a competitive auction process,
and it is expected to be completed and closed in the coming months,
they said.
China's business-process outsourcing industry is still smaller
than those in India and the Philippines but is growing as more
Chinese companies look to outsource their customer relations. VXI
Global also works with global companies to help them in China.
India and the Philippines have benefited from a stronger
English-speaking workforce, China could become a more competitive
destination for such jobs as more interactions with customers move
online through email and social media. VXI Global has operations in
the Philippines.
VXI Global, which has 17,000 employees across the globe, is
based in Los Angeles. Private-equity firm Bain Capital LLC has
owned a one-third stake in the company since 2013. In 2015, VXI
Global purchased software developer Symbio to expand the range of
outsourcing services it provides.
Deals for companies to change hands between two rival
private-equity firms are rare in Asia but becoming more frequent.
So far this year, buyout firms have done 13 deals in Asia-Pacific,
where they bought stakes from other private-equity shops worth $2.3
billion, according to Dealogic. Six such deals, worth $4.2 billion,
were agreed to during the same period last year, including MBK
Partners LP's $2.2 billion sale of Taiwanese telecom company China
Network Systems Co. to Morgan Stanley Private Equity Asia and Far
EasTone Telecommunications Co. Ltd.
Write to Kane Wu at Kane.Wu@wsj.com and Rick Carew at
rick.carew@wsj.com
(END) Dow Jones Newswires
August 04, 2016 08:25 ET (12:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Carlyle (NASDAQ:CG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Carlyle (NASDAQ:CG)
Historical Stock Chart
From Jul 2023 to Jul 2024