TIMES NEWS NETWORK [ THURSDAY, AUGUST 21, 2003 01:31:10 AM
HYDERABAD: Barely 20 months after announcing a $50 million commitment
and buying stake in Brigade Corporation, a leading private equity
investment firm, General Atlantic Partners, has sold its position
in the outsourced customer support provider early this month.
In an interesting development, the management of Brigade Corporation
led by its chief executive officer and chairman of the board of
directors, Sri Dasari, has bought out the entire stake of General
Atlantic Partners held in Brigade Corporation for an undisclosed
amount. Mr Dasari refused to divulge the amount paid to acquire
the stake citing a non-disclosure agreement.
Before the transaction, General Atlantic had 98.6% stake in Brigade
Corporation. The buyout also includes the acquisition of Brigade’s
Indian operations in Chennai and Hyderabad. Brigade India has 450
employees, with 250 employees in Chennai and the balance in Hyderabad
offering customer support for insurance, financial services and
In December 2001, General Atlantic Partners had announced its commitment
of $50 million in Brigade Corporation. Prior to the announcement,
the investment firm had put in $35 million in mid-2001. Following
the announcement, General Atlantic invested $15 million out of the
$50 million commitment.
The process of negotiating, which went for nearly three weeks,
culminated on August 7, with Mr Dasari buying out the stake of General
Atlantic Partners through a separate company IT Gurus, an IT consulting
firm. The Chicago-based IT Gurus is a six-year old firm owned by
Mr Dasari, who came on to Brigade’s Board during April 2002.
Speaking to ET, Mr Dasari said the company would be hiring 250 resources
over the next one year, while consolidating the operations through
“The entire focus will now move from US centric to India
centric. We will leverage on the India delivery centre model to
focus entirely on business transaction services and drop the acquired,
transformation and leveraged (ATL) business model,” he said.
As a fall out of the development, the US operations will be pruned
from 28 employees to eight. The relationship management, sales and
business development teams will be based in the US, while the rest
of the functions spanning delivery, quality, HR, finance and accounts
will be based out of India. Brigade is also moving out its headquarters
from San Francisco to Chicago.
General Atlantic is a leading private equity investment firm focused
exclusively on information technology, process outsourcing and communications
investments. In India, the investment firm has interests in the
BPO outfit of Patni and also Daksh.