PE Firms Said to Seek $500 Million Sale of Outsourcer Minacsby and
Minacs Ltd., the outsourcing company with headquarters in North America and India, has been put up for sale by its private-equity owners, people with knowledge of the matter said.
Asian buyout firms Capital Square Partners and CX Partners are seeking a valuation of more than $500 million for Minacs, the people said, asking not to be identified as the information is private. Minacs has annual earnings before interest, taxes, depreciation and amortization, or Ebitda, of about $50 million to $60 million, two of the people said.
A deal would add to the $73.6 billion of acquisitions globally involving computer services companies in the past 12 months, according to data compiled by Bloomberg. Minacs, which traces its roots back to 1981, provides technology outsourcing and business process outsourcing with a workforce of about 21,000 across its 35 offices.
The company was formed in its current state in 2007, after Indian tycoon Kumar Mangalam Birla merged local outsourcing company TransWorks Information Services Pvt. with North American customer relationship management firm Minacs Worldwide Inc., according to its website. Minacs later grew through a combination with PSI Data Systems Ltd. in 2009.
Aditya Birla Nuvo Ltd., backed by the Indian billionaire, sold Minacs to its current owners in a 2014 deal that valued the outsourcing firm at $260 million including debt. Representatives for Minacs and CX Partners declined to comment, while Capital Square Partners didn’t immediately respond to e-mails seeking comment.
Minacs has headquarters in Farmington Hills, Michigan, as well as Oshawa, Ontario and Bengaluru, the Indian technology hub formerly known as Bangalore. It also has offices in Germany, Hungary, Jamaica, Mexico, the Philippines and the U.K., according to its website.
The company said in November it opened a second site in Richmond, Virginia that can accommodate more than 800 employees to support a large U.S. health-care provider.
CX Capital, founded in 2009, manages about $500 million of assets, according to its website. Its investments include Barbeque Nation Hospitality Ltd., which runs a chain of grilled-meat restaurants in India, as well as generic drugmaker Natco Pharma Ltd. and south Indian lender Karur Vysya Bank Ltd. Singapore-based Capital Square Partners has bought stakes in CSS Corp., a provider of technology support services, and data analytics firm Ananto.