Genpact Announces Extension of GE Master Services Agreement Shareholders’ agreement amended, GE relinquishes board rights
New York, NY (March 27, 2008) Genpact Limited (NYSE:G), which manages business processes for companies around the world, announced today that General Electric Company (together with its affiliates, “GE”) has extended its master services agreement (“MSA”) with Genpact until December 31, 2014.
Pramod Bhasin, President and Chief Executive Officer of Genpact, said: “We are excited by this vote of confidence from our biggest client.”
Keith Sherin, Chief Financial Officer of GE, said: “Genpact began more than 10 years ago as a small GE operation led by Pramod and his team. It has grown to be a leader in a global industry and an important partner for GE providing a wide range of sophisticated services.”
Mr. Sherin added: “Over the past decade our relationship with Genpact has grown considerably and Genpact is highly integrated into the operations of many of our businesses. Given the value we place on Genpact’s service offerings, we expect our MSA revenues with Genpact to grow in 2008. We look forward to continuing a long-term and mutually beneficial relationship with Genpact.”
Concurrently, an affiliate of GE, Genpact and the other principal Genpact shareholders amended the shareholders’ agreement among them, changing the expiration date of the provision that requires GE to hold a minimum of 26,745,000 Genpact shares from December 31, 2009 to March 20, 2009. In the amendment, GE also gave up any right under the shareholders’ agreement to director representation on the Genpact Board of Directors. In connection with the amendment, Gary Reiner and Ferdinando Beccalli-Falco, two GE executives, resigned from Genpact’s Board of Directors, but will join a Commercial Council that Genpact is creating. The Commercial Council will build upon Genpact’s unique and long-standing relationship with GE and provide a senior level forum for GE and Genpact to meet periodically for discussion of topics ranging from performance feedback, future avenues for Genpact to grow GE business, GE’s specific business goals and how Genpact can help them achieve those goals to an exchange of ideas and advice.
Ron Herman, CEO of GE Commercial Finance - Equity, said: "The changes announced today will allow GE additional flexibility in managing its equity portfolio. In the event of any future sales of Genpact shares by us, we expect to make them through managed offerings with Genpact’s other principal shareholders, or otherwise in an orderly fashion.”
Mr. Bhasin noted, in relation to the recent GE announcements of dispositions from its GE Money unit of the corporate payment services division to American Express and several consumer business units in Europe to Banco Santander: “GE has always been a dynamic company. It has and will from time to time buy and sell businesses. We have an opportunity to gain a new client from GE’s dispositions and an opportunity for expanding business when GE acquires a business. The Santander deal, where it has been reported that both Santander and GE acquired businesses from the other, illustrates this well.”
Mr. Bhasin concluded: “Today’s changes reflect Genpact’s transition from a subsidiary of GE to a strong, independent company with a fast-growing, diversified client base and one of the world’s best companies as our leading client.”
About Genpact Genpact manages business processes for companies around the world. The company combines process expertise, information technology and analytical capabilities with operational insight and experience in diverse industries to provide a wide range of services using its global delivery platform. Genpact helps companies improve the ways in which they do business by applying Six Sigma and Lean principles plus technology to continuously improve their business processes. Genpact operates service delivery centers in India, China, Hungary, Mexico, the Philippines, the Netherlands, Romania, Spain and the United States. For more info: www.genpact.com.
Safe Harbor This news release contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include but are not limited to the risks and uncertainties arising from our past and future acquisitions, slowdown in the economies and sectors in which our clients operate, a slowdown in the BPO and IT Services sectors, our ability to manage growth, factors which may impact our cost advantage, wage increases, our ability to attract and retain skilled professionals, risks and uncertainties regarding fluctuations in our earnings, general economic conditions affecting our industry as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission. These filings are available at www.sec.gov. Genpact may, from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although the company believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to pay undue reliance on these forward-looking statements, which reflect management’s current analysis of future events. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.
David Jensen (US/Europe) Anita Trehan (India/Asia) [email protected] [email protected] 1 203 252-8562 +91 (98) 1110 022