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Temasek buys 17-18% stake in VFS Global for $950 million.
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Deal values VFS Global at $5 billion in equity and $7 billion in enterprise value.
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Blackstone, existing majority owner, looks to partially divest its stake.
Singapore’s state-owned investor Temasek has acquired a 17-18% stake in VFS Global, a leading passport application and visa consular services company, for $950 million. This investment values VFS Global at $5 billion in equity and $7 billion in enterprise value. The deal is expected to be officially announced soon.
VFS Global, founded in 2001, provides outsourcing and technology services to governments and diplomatic missions worldwide. The company faced challenges during the COVID-19 pandemic but has since rebounded. In the first half of 2023-24, VFS Global reported an operating margin of 33.01% and total income from operations of Rs 634.74 crore.
Blackstone, which acquired a 75% stake in VFS Global in 2021 for $1.8 billion, is partially divesting its stake. The US-based asset manager was exploring options to monetize its investment, including a potential initial public offering (IPO). According to sources, VFS Global is likely to list in the next 2-3 years.
This investment by Temasek underscores the growing interest in the visa and passport services sector. VFS Global’s strong performance and recovery post-pandemic have made it an attractive investment opportunity.
