AAA Citi backs into iQor deal

Citi backs into iQor deal

Citi Venture Capital International (CVCI), the private equity division of US-based bank Citigroup, has invested in business process outsourcing (BPO) services provider iQor as part of the funding needed to buy peer RMS.

In September, iQor agreed a secondary buyout by private equity firm Huntsman Gay Global Capital and Starr International Company, an insurance and investment firm.

Huntsman Gay and Starr have now provided additional equity to help buy RMS, while alternative investment firm Guggenheim Partners, the former majority owners of iQor, provided further debt for the deal and also retained some equity after the September buyout.

IQor had sales of more than $345m last year. RMS, formerly known as Receivable Management Services, was spun off from data provider Dun & Bradstreet in 2001 and CVCI acquired a majority stake from private equity firm PNC Equity in 2005.

and is one of the largest commercial accounts receivables management companies in the world, with 3,000 employees in the US, Canada, Hong Kong, India and Mexico.

Bob Khanna, managing director of CVCI and who led the 2005 purchase of RMS, said:  "We look forward to working with Vikas [Kapoor, chief executive of iQor] and the combined iQor and RMS management team to build a leading global BPO business."

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