Huntsman Gay Global Capital, a middle market private equity firm, has made a majority investment in iQor, a provider of business process outsourcing services and the world’s second largest accounts receivable management company.
iQor’s current management team will remain in place and retain a significant ownership stake in the company. Terms of the private transaction were not disclosed.
Headquartered in New York City, iQor has 11,000 employees and 21 locations in North America, Europe, India and Asia. The company generated more than USD345m in revenues in 2009.
Guggenheim Investment Management, which has owned iQor since 2007, is retaining an equity interest in the business and providing debt financing for the transaction. Starr International, through one of its subsidiaries, is investing together with Huntsman Gay in the deal.
"A number of investors showed strong interest in iQor, but we determined that Huntsman Gay Global Capital is the right choice to help us realise our potential," says Vikas Kapoor, president and chief executive of iQor. "Huntsman Gay’s thoughtful, data-driven approach throughout the diligence process demonstrated a keen understanding of our business, our customers and end markets. The professionals at Huntsman Gay have strong strategic and operations experience and we have found them to be great working partners. We are confident that they will add real value as we work to achieve our strategic objectives."
"This is a signature deal for Huntsman Gay," says Gary Crittenden, managing director of Huntsman Gay Global Capital. "What Vikas and iQor’s management team have done in just five years is remarkable, transforming what began as a roll-up of collection agencies with negative Ebitda into a profitable and growing market leader in the BPO industry. iQor has done this by systematising the business, enhancing compliance processes, and implementing innovations that change the way it recruits, trains and rewards its people. iQor has made a major investment over the last few years in its TeQ21 technology suite, which we believe will enable the company to outperform the competition at every level."
