American private-equity firm Carlyle Group LP is acquiring 70% of VXI Global Solutions LLC, a China-focused outsourcing business, in what is considered as a big bet that the future of the outsourcing industry will be in China.
The acquisition values VXI Global Solutions at around USD1bn, according to a Wall Street Journal report. The deal is expected to be completed in the coming months.
China’s business process outsourcing (BPO) industry in still smaller than those in India and the Philippines but Carlyle’s investment points to China as the future of the outsourcing industry. The report said owners of VXI Global Solutions will continue to hold minority stakes in the company.
VXI Global, which has operations in the Philippines, has 17,000 employees across the globe. The company is based in Los Angeles. – BPONewsDaily.com