Healthcare BPO firm GeBBS eyes $1Bn valuation in sale
NEW DELHI, INDIA — Investment firm ChrysCapital is reportedly exploring the sale of its portfolio company GeBBS Healthcare Solutions, at a valuation of around $1 billion.
ChrysCapital had acquired an 80% stake in GeBBS in 2018 for $140 million, valuing the company at $175 million at that time.
ChrysCapital to make lucrative profits off GeBBS sale
The potential $1 billion sale would mark a significant profit for the investment firm on its investment just four years ago.
A report by The Economic Times revealed that ChrysCapital has been talking to investment banks to gauge interest from potential buyers, including other private equity funds and key players in the healthcare revenue cycle management (RCM) space.
ChrysCapital has tapped U.S. investment bank and capital markets firm Jefferies to run the sale process to global funds.
Performance of GeBBS under ChrysCapital
GeBBS has grown rapidly under ChrysCapital through a combination of organic growth and strategic acquisitions.
In 2023, Modern Healthcare ranked it among the top 20 largest RCM firms, and it has won other accolades for its medical coding and billing solutions.
Founded in 2005, GeBBS offers RCM solutions and is regarded as one of the leaders in the Health Information Management (HIM), RCM, patient contact, risk adjustment, and quality segment. It employs over 14,000 workers globally.
Wipro, IBM, Cognizant, and Hewlett-Packard are some of GeBBS’ competitors.
ChrysCapital has been an active investor in the IT/ITeS sector, generating lucrative returns from its investments in companies like Infosys, HCL Technologies, Mphasis, and Hexaware Technologies.
In 2013, the firm sold its stake in Hexaware to Baring Private Equity Asia (now EQT), realizing a threefold return.
In 2017, ChrysCapital pulled its investment in Hyderabad-based Cyient with a fivefold return and also divested its entire 13.5% stake in IT consultancy firm KPIT Technologies during the same year.
ChrysCapital’s recent exit from Mankind Pharma yielded an internal rate of return (IRR) of 24%. With a total investment of ₹2,210 crore ($264,344.95) in Mankind Pharma, the firm made an exit worth ₹7,510 crore ($898,294.38).
