"It's easy to make a buck. It's a lot tougher to make a difference."
-Tom Brokaw
August 04,2016
The Carlyle Group Acquires 70% of VXI Global Solutions
Financial Information
- Not Disclosed
Transaction Facts
- According to a report in the Wall Street Journal, The Carlyle Group (Nasdaq:CG) a US-based private equity firm, has plans to buy majority stake in VXI Global Solutions.
- VXI is a China-focused business process outsourcing and IT outsourcing company that provides customer engagement, call-center and technology solutions.
- The Carlyle Group will buy 70% of VXI, valuing the outsourcing company at approximately $1 billion. VXI’s management will retain a minority stake in the company.
- Bain Capital LLC, which invested in VXI in a 2013 transaction advised by martinwolf, will sell its one-third stake in the company.
- The deal was reached after an auction and is expected to close in the coming months.
Outsourcing Moves to New Shores
- A Changing Landscape: As customer interaction shifts from phone to internet (via email and social media), emphasis shifts from strong English-speaking workforces to strong English-literate workforces. This helps China compete against countries with strong English-speaking workforces like India and the Philippines.
Diversification is Key: Although primarily known for its call-center outsourcing services, VXI has worked to diversify. Early last year, it strengthened its client experience value chain by acquiring Symbio. The acquisition expanded VXI’s offerings into R&D-as-a-Service solutions, which includes software development, testing and quality assurance. - A Growing Trend: Recapitalizations in the Asia region are rare but increasing. According to Dealogic, in this year alone there have been 13 transactions, totaling $2.3 billion, where a PE firm sold a company to another PE firm in the Asia-Pacific region.
Diversification is Key: Although primarily known for its call-center outsourcing services, VXI has worked to diversify. Early last year, it strengthened its client experience value chain by acquiring Symbio. The acquisition expanded VXI’s offerings into R&D-as-a-Service solutions, which includes software development, testing and quality assurance. For more information about this transaction, click here to read the report in the Wall Street Journal.
martinwolf was not the advisor in this transaction.
