GE Sells India Back Office Unit Stake for $500 million

NEW DELHI, India – General Electric Co., the world’s top conglomerate, said on Monday it had sold a majority of its pioneering Indian back-office unit to exit a non-core business and help the fast-growing unit gain new customers.

The sale of 60 percent of GE Capital International Services (GECIS) for about $500 million is the biggest deal so far in India’s consolidating $3.6 billion back-office industry.

That industry is growing at 50 percent a year, but GE felt the sale to global private equity investors General Atlantic Partners and Oak Hill Capital Partners would free up some capital for investment in other areas.

“We saw the opportunity for GECIS to grow, (but) that did not fit with our strategy,” said Scott Bayman, president of GE India.

GECIS serves mostly GE subsidiaries. By moving out of the GE fold, it will broaden its potential clientele.

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