Navis acquires stake in Malaysian IT firm Strateq

The initial investment, made by Navis alongside company management, has been used to buyout Kencana, which backed Strateq in 2006.

The private equity firm will also be subscribing to new shares via a substantial capital injection into the company. Following the share issue, Navis' stake in Strateq - minus the management holding - will be 40-50%.

"Kencana divested its stake because it thought the timing was right. The management wanted to stay and build the company and increase their stake in the business," said Raj Ayadurai, a partner with Navis.

Established in 1983, Strateq is one Malaysia's leading IT services companies. It provides IT solutions for petrol stations and hospitals, data center and business continuity services, IT infrastructure, third-party software solutions and maintenance services. The company has an annual revenue of around MYR180 million.

The fresh capital will be put towards expanding Strateq's presence in its existing IT services segments. Dr. Ahmad Fikri Hussein, the company's CEO, added that Navis' regional expertise and financial strength would be used to explore growth opportunities throughout Asia.

"Strateq is an outstanding company with experienced management, strong operations and a leading position in the business segments it operates in," said Rodney Muse, managing partner at Navis.

This was the fourth investment from the Navis Malaysia Growth Opportunities Fund I and the first made this year. The vehicle, which has total commitments of MYR303 million, is now over 50% deployed.

Last year, the fund invested in cinema operator MCAT Box Office and private education services provider SEG International.

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• Topics
• Southeast Asia
• Support services
• Investments
• Technology
• Technology
• Malaysia
• Growth capital
• Navis Management