Genpact signed Agreement to acquire Consulting and IT Services Firm Headstrong Corporation

Outsourcing giant Genpact on 6 April 2011 signed an agreement to acquire consulting and IT services firm Headstrong Corporation headed by former HCL co-founder Arjun Malhotra for a cash consideration of $550 million. The transaction will be funded by a combination of existing cash and acquisition financing.

Genpact expects the transaction to be accretive to earnings per share on a GAAP basis in 2011. Headstrong’s generated revenues was approximately $217 million in 2010 and Genpact expects Headstrong’s long-term growth rate to be in excess of 20 per cent per year.

With this acquisition Genpact stands to gain critical domain and technology expertise in the complex, but highly attractive, capital markets industry vertical. This expertise - combined with capabilities in business process management (BPM) and smart decision services that encompass analytics and reengineering will Genpact to create a uniquely powerful value proposition for clients.