HCLT, Carlyle out of race for Cambridge stake

Global private equity fund Carlyle and Indian software services major HCL Technologies are reported to have dropped out of the race to acquire a 48 per cent stake in Cambridge Solutions "� a Bangalore-based Rs 1,200-crore IT and BPO services provider.

According to sources, the two firms opted out of the Rs 650-crore deal due to price differences with a group of promoters who are looking at exiting.

Meanwhile, a senior executive of the company said two other global PE funds had evinced interest in the stake. "One of them is from the US and the other from Europe. Both are blue-chip PE funds and one of them is expected to align with Ramesh Vangal, who holds 13 per cent in Cambridge," the executive added.

No official comments were available from Cambridge.

Ramesh Vangal, an entrepreneur who has interest in liquor to shipping to banking, was earlier in talks with Carlyle to provide him the financial support to take control of Cambridge. Vangal, with the new PE partner, is bidding to pick up 15 per cent from the 46 per cent held by a group of co-promoters, led by Chris Sinclair, Satyen Patel and the Chandaria family. Sinclair is executive chairman and CEO, while Patel is executive vice-chairman of Cambridge.

If Vangal succeeds in bagging the 15 per cent, along with his current 13 per cent, he will have to make an open offer under the Sebi guidelines for an additional 20 per cent, which will propel his stake to 48 per cent. The entire deal is expected to be in the range of Rs 650-700 crore at Rs 160 a share.

The other option is that of another PE player going all alone and taking control of the company.

The company employs close to 5,000 people with a major focus on BPO.