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The Carlyle Group has reached an agreement with a group of banks to raise over $1 billion to support its planned acquisition of Mumbai-based Hexaware Technologies.

The company’s decision comes at a time three investors Bain Capital & Carlyle and French IT outsourcing major Teleperformance SE have submitted binding bids to acquire Hexaware.

The debt facility is likely to be structured as a one-year bridge loan, which will be later taken out by an international bond offering, according to the report. Carlyle has emerged as the preferred bidder for Baring Private Equity Asia owned IT services firm Hexaware for a $3 billion acquisition

If successful, it would be winning a competitive bidding process against peers including KKR & Co. and Bain Capital, as well as French company Teleperformance SE for Hexaware, the agency added

After the acquisition, the company issues high-yield corporate bonds backed by its cash flows that will be used to repay the bridge loan.

A few months earlier, Carlyle had emerged as the lead contender to acquire Blackstone-backed IT firm Mphasis, but the deal fell through over a valuation mismatch. The PE firm has been pretty active over the last 18 months, announcing deals with the Piramal group, Sequent Scientific, Bharti Airtel’s data centre business and PNB Housing Finance.

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