Indian BPO company Genpact has agreed to acquire Headstrong, a US-based provider of consulting and IT services, for $550m.
Headstrong, which generated a revenue of $217m in 2010, specializes in financial services. It has expertise in asset management, derivatives, wealth management, prime brokerage, reference data, compliance and mortgages.
Headstrong’s clients include nine of the world’s top 10 investment banks and three of the top five asset managers.
Headstrong also has an emerging practice in healthcare administration.
Headstrong generated revenues of approximately $217m in 2010 and Genpact expects Headstrong’s long-term growth rate to be in excess of 20% per year.
Headstrong has approximately 3,700 employees in seven countries and generates a significant amount of revenue from employees who are onsite with clients in the US, the UK and Japan.
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The transaction is expected to close by 31 May 2011, subject to customary regulatory and other conditions.
Genpact president and CEO Pramod Bhasin said Headstrong is a complementary high-growth business, built by talented leaders, that is an excellent fit strategically, financially, operationally and culturally.
"With this acquisition, we are gaining critical domain and technology expertise in the complex, but highly attractive, capital markets industry vertical. This expertise – combined with our capabilities in business process management (BPM) and Smart Decision Services that encompass analytics and reengineering – will create a uniquely powerful value proposition for clients," Bhasin said.
