Hillhouse outbids EQT for GeBBS Healthcare in $870Mn deal

HONG KONG, CHINA — Hillhouse Investment has emerged as the frontrunner in the race to acquire GeBBS Healthcare Solutions, a healthcare business process outsourcing (BPO) firm.
The Hong Kong-based private equity giant has reportedly offered $870 million for a 100% stake in the Los Angeles-headquartered company, outbidding competitor EQT Partners, which offered $855-860 million.
GeBBS: A major player in healthcare BPO
Founded in 2005 by Vijay Singh, GeBBS Healthcare Solutions has grown into a significant player in the offshore healthcare administrative services sector.
The company specializes in revenue cycle management (RCM) solutions and employs 14,000 staff across 16 delivery centers globally. In the healthcare BPO space, GeBBS competes with industry giants like Wipro, IBM, Cognizant, and Accenture.
GeBBS has demonstrated impressive financial performance, posting revenues of approximately $200 million and EBITDA of $50 million in fiscal year 2024. The company’s growth trajectory remains strong, with projections indicating an EBITDA increase of $70 million for FY 2025.
ChrysCapital set for substantial return on investment
ChrysCapital, India’s largest homegrown private equity firm, currently owns about 80% of GeBBS. The fund acquired its stake in 2018 for $140 million, valuing the company at $175 million at the time.
If the Hillhouse deal goes through, ChrysCapital stands to reap a 5-6x return on its investment.
“The final bids are due in the coming week. There are other suitors in the fray but EQT and Hillhouse Investment are seen as the two most aggressive suitors currently,” said a source close to the matter.
Industry veterans to take the helm
The Economic Times reported that industry veterans Gautam Barai (former COO and President at WNS) and Gautam Narayan (ex-partner at Apax Partners) are expected to lead GeBBS if Hillhouse’s bid proves successful.
Earlier this year, Hillhouse partnered with this management team to create Novarete, an IT-enabled business process management platform.
The healthcare BPO market is experiencing rapid growth, with global demand expected to reach $626 billion by 2029, according to MarketsandMarkets.
This acquisition would position Hillhouse to capitalize on the sector’s expansion and the increasing need for cost-effective healthcare administrative solutions.