Bain said to be in advanced talks for $1.6 billion Genpact stake

By Bloomberg News

Bain Capital Partners LLC is in advanced talks to buy a $1.6 billion stake in Genpact Ltd. from General Atlantic LLC and Oak Hill Capital Partners LP, according to a person with knowledge of the matter.

Bain Capital, the private-equity firm that manages nearly $65 billion, may announce an agreement for the 40 percent stake as soon as this week, the person said, asking not to be identified because the talks are private. Apax Partners LLP had also bid for the asset, two people said.

Genpact, a computer-services company spun off by General Electric Co. in 2004, has advanced almost 18 percent this year in New York trading, bringing its market value to $3.9 billion. The stake held by Oak Hill and General Atlantic is worth almost $1.6 billion.

James David, a spokesman for Oak Hill, and Pat Hedley, spokeswoman for General Atlantic, declined to comment. Benjamin Harding, a spokesman for Apax in London also declined to comment.

Genpact started operations in 1997 as an India-based unit of GE that assisted the U.S. company’s finance division. The Bermuda-based company still gets a quarter of revenue from GE, President NV Tyagarajan said last month.

Oak Hill and General Atlantic acquired 60 percent of the unit, formerly known as GE Capital International Services, for $500 million in 2004. They sold some of their investment in Genpact’s $494 million initial public offering in August 2007, data compiled by Bloomberg show.

Bain Capital’s other investments in India include a stake in Hero Investments Pvt. and Lilliput Kidswear, according to its website.