After Citigroup, Prudential UK could be the next to put its captive arm Prudential Process Management Services (PPMS) -India on the block, and go third party by the end of August this year, say market sources.
According to the sources, Capita Group Plc-UK has made highest bid for the same and is likely to acquire PPMS. The deal is expected to be valued at about $200-300 million. An official mail send to both the companies elicited the response, ?We don?t comment on market speculations.?
Established in December 2003, PPMS at present has over 1800 employees and focuses on providing value to Prudential?s operations in UK. According to a Mumbai-based investment banker, Capita is aggressively looking at increasing its market share in the insurance outsourcing business and acquiring PPMS seems to be a perfect deal.
Capita Group Plc, the UK?s largest back office company, has two facilities in Mumbai under the name Capita Offshore Services. It posted an 18% rise in first-half profit in the UK and could soon see a mounting challenge from Xchanging, an international business processing company which recently launched its insurance outsourcing services, according to media reports in the UK.
?Capita and Xchanging will increasingly be looked at side by side as both are 100% players in the BPO market.?