martinwolf
Transaction Analysis
The Carlyle Group Acquires 70% of VXI Global Solutions
Financial Information
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.
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.
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| About martinwolf
With offices in the San Francisco Bay Area, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 140 transactions in nineteen countries and sold seven divisions of Fortune 500 companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Matthew Putzulu at [email protected]. © martinwolf 2016 |
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