Hexaware’s board could approve the deal as early as today according to Bloomberg, which cited two sources with knowledge of the matter.
The deal would give Baring a stake in the business of about 42 per cent, picking up part of that from existing private equity backer General Atlantic.
Both sources added that Baring would then have to make a mandatory tender offer for up to 26 per cent.
Hexaware is a specialized IT and business process outsourcing service provider, and says it is as ranked the fastest growing mid-sized company in India.
The company employs about 6,000 staff in 20 countries.
In May private equity firms including The Carlyle Group, Advent International, Bain Capital and Blackstone were said to be amongst bidders for a $1bn stake in Indian IT services group MphasiS, which is owned by Hewlett-Packard.
Others said to be in the race included L&T Infotech and Tech Mahindra according to Reuters sources.
Copyright © 2013 AltAssets