HONG KONG, CHINA – Hillhouse Investment, a major private equity firm, has emerged as the top bidder in the race to acquire GeBBS Healthcare Solutions, a healthcare business process outsourcing (BPO) company.
Hillhouse has offered $870 million for a 100% stake in the Los Angeles-based firm, surpassing EQT Partners, which submitted a bid in the range of $855 to $860 million.
GeBBS, currently majority-owned by ChrysCapital, an Indian private equity firm, could bring ChrysCapital a significant return on its 2018 investment.
ChrysCapital bought an 80% stake in the company for $140 million at a valuation of $175 million. If the Hillhouse deal is finalized, ChrysCapital could achieve a return of five to six times its original investment.
Industry insiders report that final bids are expected in the coming week, with EQT and Hillhouse emerging as the most aggressive contenders. If Hillhouse succeeds, veteran executives like Gautam Barai and Gautam Narayan are expected to take leadership roles at GeBBS, guiding the company into its next phase of growth.
GeBBS’ strong market presence and future growth
Founded in 2005 by Vijay Singh, GeBBS Healthcare Solutions has become a key player in healthcare administrative services, particularly in revenue cycle management (RCM).
The company employs 14,000 people across 16 delivery centers globally and competes with industry giants like Wipro, IBM, Cognizant, and Accenture in the healthcare BPO space.
GeBBS has seen robust financial performance, generating $200 million in revenue and $50 million in EBITDA for the fiscal year 2024. The company’s growth outlook remains strong, with expectations for EBITDA to increase to $70 million by 2025.This acquisition would allow Hillhouse to take advantage of the expanding global healthcare BPO market, which is projected to reach $259.5 billion by the end of 2028, according to BCC Research.
