General Atlantic buys $66m stake in Service Source

Private equity firm General Atlantic has added a fifteenth services company to its portfolio after buying a $66m minority stake in an outsourcing provider.

General Atlantic, a US-based private equity firm, has bought a $66 million (€51 million) minority stake in Service Source, an outsourcing provider, according to a statement.

Service Source provides support and maintenance revenue for hardware, software and healthcare companies.  Its clients include Sun Microsystems, a US-based network provider, and Hitachi Data Systems, a data storage company.

The company is based in San Francisco and has service centres in Denver, Houston and Dublin, Ireland. Existing institutional investors include Benchmark Capital, a venture capital firm, which invested $10 million in the business in 2005, and Housatonic Partners, a US private equity firm, which made its investment in 2003.

General Atlantic already has 14 services companies in its portfolio.  Current investments include Hexaware Technologies, an information technology services provider, which General Atlantic committed $67.6 million to in March 2006, and TriNet, a human resources company with operations in the US and Canada, which General Atlantic bought a controlling stake in following an undisclosed investment in June 2005.

Earlier this month General Atlantic, Goldman Sachs, Softbank Asian Infrastructure Fund and the NYSE Group each bought a five percent stake in India’s National Stock Exchange, paying a combined $460 million.

General Atlantic was founded in 1980 focuses on the information technology and intellectual property sectors.  It has about $12 billion of capital under management.