Bengaluru based IT Consulting and Services firm Genpact unit Headstrong is likely to get acquired in a bid where Hexaware Technologies, Mphasis and L&T Infotech are being considered as potential investors.
According to sources familiar with the matter, company’s current valuation is currently being valued at around $200 million.
Genpact acquired a capital markets domain specialist called Headstrong seven years ago. At present, it may bring around $200 million or less than half of the amount paid by Genpact in the process of sale. The firm bought Headstrong in an all-cash deal to distort to a domain specialist so as to benefit the customers through integrated service offerings.
The words of Hfs Research’s CEO, Phil Fersht were that they desired to build a credible IT service. The main motive was IT as well as business process management. But unfortunately, this offering did not work wonders and failed. Thus, the acquisition investment was not sufficient as for the market requirements and many people left Headstrong.
The Headstrong acquisition tends to be troublesome from the initial stage due to the lack of enough scale inside Genpact. It has various cultural differences and was emphasised in capital markets, where Genpact lacks strength.
So it was last year that Genpact acquired TandemSeven, which is a Boston-based digital consulting firm. Its other acquisition was BrightClaim and National Vendor the motive of which was expertise in powerful insurance claim management. So, IT companies like Hexaware Technologies Ltd, Mphasis Ltd and L&T Infotech Ltd are among the potential bidders for Genpact’s capital market solutions unit Headstrong.