Along with hedge fund DE Shaw Group, Raman Roy-led Quatrro BPO has acquired UK-based Babel Media, a specialist outsourced service provider to interactive and gaming entertainment industry. This move marks as the largest acquisition ever made by the BPO firm. However, the size of the deal remains sealed, with industry sources estimating it to fall in the range $100-120 million.

Quatrro ate majority of the stake pie, while DE Shaw remained content with a smaller stake in Babel. However, the US-based hedge fund has also acquired a minority stake in Quatrro and offered leverage finance for Bable’s acquisition. This makes it the second investment company to buy a stake in Quatrro following Olympus Capital, which had acquired about $100 million minority stake in 2006.

Mr. Roy said that the BPO firm is now eyeing takeovers in the range $50-210 million, but remained tight-lipped about the size of the Babel takeover.

Quatrro has roped in Richard Leinfellner, the former Electronic Arts VP and executive producer, as CEO to head Babel. The UK Gaming company has 500 employees at Brighton (UK), New Delhi, Los Angeles and Montreal.

As per a PricewaterhouseCoopers report, the gaming industry is all geared to rise to $68 billion by the year 2012. Mr. Roy said that Quatrro had recognized gaming as one of the growth vectors for the company, and realized that the only way to participate in the booming industry was through acquisitions, since India does not play in gaming as yet.