India’s Aditya Birla Nuvo has confirmed the sale of its BPO unit Minacs to a group of private equity firms for $260 million. The new owners, Capital Square Partners (CSP) and CX Partners, have not disclosed their plans for Minacs, which has a sizeable operation in Latin America and the Caribbean.
Nearshore Americas had only last week reported the possible sale of the Birla’s BPO unit. With 21,000 employees in 35 locations, Minacs is India’s sixth largest BPO firm.
“We are confident that the new shareholders will provide the requisite direction to Minacs and enable it to rise to its full potential,” said Birla’s Managing Director Rakesh Jain, adding that the firm decided to sell Minacs because it was increasingly occupied with managing its other businesses.
In an interview with Nearshore Americas in November 2012, Minacs CEO Deepak Patel said his company was the biggest BPO partner for the auto industry in North America. Months later, Minacs launched a delivery center in Mexico and then another in Jamaica.
“We see tremendous opportunity to add value to Minacs’ strategic roadmap by building on its great capabilities in customer lifecycle, marketing and other back office services,” said Sanjay Chakrabarty of Capital Square Partners. Last year, Chakrabarty joined hands with a European PE firm Partners Group to buy CSS Corp for $270 million. Chennai-based CSS Corp recently expanded its operations into Costa Rica.
Bangalore-based Minacs, whose revenue increased to $375 million in 2011 from $312 million the year before, is also seeking locations in the Dominican Republic and Costa Rica.
Minacs started offering IT services after it acquired PSI Data Systems in 2009. It went on to buy London-based Compass BPO to add finance and accounting services to its portfolio. In the same year, it acquired the Minnesota-based Bureau of Collection Recovery to add accounts receivables management and collections services to its portfolio.
Minacs was formed in 2007 with the merger of TransWorks, an Indian BPO company and Minacs, a Canadian CRM Services company. Today the company generates $450 million in revenue and $40 million in operating profits.