PC: Business Standard
The private equity giant is weighing the possible sale or investment of its stake in the outsourcer of visa applications, VFS Global, pegged at a $7 billion valuation.
Blackstone Considers Sale of Stake in VFS Global
Alternative asset manager Blackstone is weighing options pertaining to the sale of a majority stake in VFS Global – a visa application outsourcing and technology services firm – the report said, after the firm received expressions of interest from a number of possible investors. A possible deal may value VFS Global at about $7 billion, though Blackstone has not decided on anything as yet.
Neither Blackstone nor VFS Global have commented on the news, despite being approached by Reuters seeking further details.
History of Blackstone’s Investment with VFS Global
Blackstone had first acquired a majority in VFS Global during October 2021 from Swedish investment firm EQT. Following the deal, EQT had a minority stake in the company. Since then, Blackstone is considered a major stakeholder and has been instrumental in its growth and expansion into many global markets.
Early-Stage Strategic Discussions
It was reported that Blackstone had held early-stage strategic discussions with its advisers to examine a range of options for its stake in VFS Global. The options include the full or partial sale of its stake in the firm, or the introduction of a minority investor to raise additional funds and support future growth initiatives.
Discussions are still at a preliminary stage, and it is not assured that Blackstone would go ahead with the deal. Conclusive decisions might later be made by the firm to not pursue a sale or bring in new investors depending on early-stage assessments.
VFS Global: A Visa Outsourcing Giant
Headquartered in Zurich and Dubai, VFS Global provides technology solutions and administrative support for visa, passport, and consular services. The company works with governments and diplomatic missions internationally to manage the non-judgmental and administrative aspects of the visa application process.
VFS Global is an important partner to many governments, offering a range of services such as data entry, appointment management, biometric capture, and verification of visa documents. Technology-based solutions make it an essential player in the visa outsourcing industry.
Outlook for VFS Global
With the increasing demand for fast-track visa processing services, VFS Global has tremendous growth opportunities as it stands ahead of the competition. The company is globally positioned, having strong relationships with governments, and thus might find a long list of potential investors who wish to leverage this ever-growing demand for faster visa processes.
To Blackstone, this provides an exit opportunity to cash out its majority stake in the firm or raise extra capital for growth and expansion plans of VFS Global. If the potential transaction materialises, it will shape the future course of the company in a fiercely competitive global visa outsourcing industry. Still, it depends on what the current evaluations at Blackstone throw up.
With Blackstone weighing options, including a potential sale or investment in VFS Global, no final decisions have been taken. Firm considerations are at an early stage, and hence the future course of its stake in VFS Global is unknown as of this date.
