Citigroup to exit India's Infosys' BPO unit Progeon

25 March 2006

Citigroup is ready to exit Progeon, the business process outsourcing (BPO) arm of Infosys Technologies, Business Standard reported, citing sources close to the development.

The deal can fetch Citigroup about 140 mln usd, the newspaper said.

Citigroup holds a 23 pct stake in Progeon.

Set up in April 2002, Progeon operates in India, the Czech Republic and the Philippines, and employs about 6,200 people, according to the report.

Citigroup initially made a 20-mln usd investment in Progeon and until recently a former Citigroup executive headed the BPO firm.

Citibank and Infosys officials declined to comment, the report said.