US-based asset management giant Blackstone Inc. is reportedly weighing options for its majority stake in VFS Global, the world’s largest visa outsourcing and technology services provider. According to Bloomberg, the potential sale could value the company at approximately $7 billion, following interest from a number of potential investors.
Blackstone acquired its majority stake in VFS Global in 2022 from Swedish private equity firm EQT AB, though the deal amount was not publicly disclosed. Despite Blackstone’s majority holding, EQT AB retained a minority stake, along with the Kuoni and Hugentobler Foundation.
VFS Global, with dual headquarters in Zurich and Dubai, provides governments around the world with administrative services related to visa and passport processing.
Since its inception in 2001, the company has grown into a global leader in its sector, having processed more than 294 million applications and approximately 141 million biometric enrollments since 2007. Its services span over 144 countries, making it a vital partner to many governments.
Sources familiar with the matter revealed that Blackstone has initiated preliminary discussions with financial advisers to explore various strategic options for VFS Global. These options include a full or partial sale of its stake. One scenario being considered is the introduction of a minority investor to provide additional capital, which could be used to accelerate growth. Several sovereign wealth funds have already expressed interest in acquiring a stake in the company.
However, the deliberations are still in their early stages, and Blackstone may ultimately decide to retain its majority stake. When asked for comment by Bloomberg, a spokesperson for Blackstone declined to provide a statement.
As one of the leading players in the alternative asset management space, Blackstone’s decision could have significant implications for both the visa services industry and potential investors. For now, market watchers are closely monitoring the outcome of these discussions.