Bangalore: In the biggest ever private equity deal in India, the Baring Private Equity Partners Asia is all set to buy country’s midsized IT service exporter Hexaware for an estimated sum of $400 million.

The last such big deal in the country involved a $330-million funding from Apax Partners to iGate Corp for the Patni Computer acquisition in 2011.

Baring Asia is in advanced talks to have a 42 percent share in the company which is held by the promoter Atul Nishar and his family and private equity investor General Atlantic Partners, reports Times Of India. The acquirer will follow it up with a mandatory open offer for an additional 26 percent shares, bringing the final deal between $350 and $400 million.

The sources said the Hexaware promoters and Baring Asia have already reached a tentative agreement pending the final lap of formalities.

The valuation is Hexaware is expected to be around $700 million (over 4,200 crore) at 15-18 percent premium to the current market value.

Hexaware is country’s 9^th largest IT services exporter with annual revenue of 912 crore as of 2012. The company had projected sequential growth of 3.5-5.5 percent growth, significantly higher than industry median and its own performance in recent past.

The mid-tier company beat the market analyst’s expectations by delivering better than expected numbers in second-quarter. In fact, on Monday Hexaware’s shares closed 2.48 percent higher at 124.05 in a falling Mumbai market.

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