Tuesday, March 13, 2018

InterGlobe to sell unit in $400m deal

Bengaluru: Travel and hospitality conglomerate Inter-Globe Enterprises has started a process to divest shares in its technology services unit. InterGlobe has mandated investment banks Avendus and BNP Paribas to advise on a sale of InterGlobe Technologies (IGT) with an asking valuation of $400 million, people directly aware of the matter said.
IGT is an IT services and back-office specialist in hospitality and travel sectors with annualized revenue of $200 million and operating profit of about $30-40 million, one of the sources cited earlier said.
Buyout private equity firms such as Blackstone Group, Apax Partners and Partners Group, or their portfolio companies like Mphasis and Zenzar Technologies, among others, could be interested in the deal. The sale process could also attract the attention of BPO majors like WNS.
An emailed questionnaire to IGT remained unanswered at the time of going to press. InterGlobe Enterprises, the parent of India’s largest airline IndiGo, has interests in aviation, hospitality, travel commerce, airline management, pilot training and real estate.
InterGlobe, through Indi-Go, is said to be in contention to buy into the soon to be privatised Air India.
IGT has 14 delivery centres with over 10,000 employees globally. It manages customer experience for the four of the top five airlines and has improved customer service of two of the top five cruises. It has also optimised tech for four of the top 10 hotel chains.
13/03/18 Shilpa Phadnis and Boby Kurian/Times of India