New York-based REcap Partners-LLC is all set to buy out Chennai-based business process outsourcing firm HOV Services [Get Quote] along with its two units operational in Beijing and Hong Kong for around Rs 950 crore ($202 million).

Last February, HOV Services hit the headlines when it acquired US-based Lason for $148 million (around Rs 660 crore) - one of the biggest acquisitions then in the BPO segment.

In a statement to the Bombay Stock Exchange, the company said it has received an offer of from REcap Partners-LLC to purchase all assets (including shares) owned by HOV Services and LLC (a key subsidiary of the company incorporated in Nevada, USA), the entire share capital in HOV Services (Beijing) currently held by HOVS Holdings - another wholly-owned subsidiary of the company incorporated in Hong Kong - and all operating assets used by HOVS and HOVS Beijing-owned by the company. This follows the announcement that the company had made on June 5, 2008.

Company officials did not disclose the exact deal proposition, as the board of directors are meeting on October 8, but insiders believe the effects of the global economy slowdown have forced REcap Partners-LLC, a promoter in the firm to restructure its business, leading to the complete buyout of HOV Services.

A top company official from the finance department said, "REcap has agreed to our terms and conditions and a final settlement in this regard is expected soon. Since the company planning to buy out HOV assets is one of the promoters of HOV Services, the deal should be smooth."