Apax exits remaining GlobalLogic stake to Partners Group
Apax Partners has sold its remaining 48% interest in GlobalLogic, an IT outsourcing company founded by several Indian entrepreneurs, to Partners Group. The deal values the business at more than $2 billion.
Having bought a majority stake in US-headquartered GlobalLogic for $420 million in 2013 – taking out a string of existing PE investors – Apax sold 48% to Canada Pension Plan Investment Board (CPPIB) last year for an undisclosed sum. The private equity firm retained an equal holding with the balance held by GlobalLogic management.
The company helps clients develop digital products and services that enable better customer engagement, ranging from apps and digital marketplaces to video delivery infrastructure and digital media products. Customers include Cisco, Verizon, Microsoft, Coca-Cola, BMC, Fox, and Oracle.
GlobalLogic has 12,000 employees globally and operates 26 engineering centers in nine countries. Seven of these facilities are based in India. The company claims that revenue is growing at an annual rate of more than 20%, reaching $500 million last year. Partners Group plans to help strengthen GlobalLogic's competitive position, which will include leveraging its relationships to drive expansion in Europe.
"Digital transformation throughout the economy is driving demand for next-generation product engineering services, a long-term trend we expect to continue for many years. GlobalLogic's world-class network of software engineers assists clients to deploy cutting-edge software products that propel their business forward," Todd Miller, a managing director with Partners Group's Americas private equity division, said in a statement.
Apax and Partners Group both have existing exposure to India's IT outsourcing space. Apax's portfolio currently includes Zensar Technologies, while it previously supported iGate's $1.22 billion acquisition of Patni Computer Systems. Partners Group purchased a majority stake in CSS Corporation for $270 million in 2013, facilitating an exit for SAIF Partners, Goldman Sachs, and Sierra Partners.
The firm also has an active interest in the business process outsourcing industry in the Philippines, having acquired SPi Global last year at a valuation of $330 million. The sellers were CVC Capital Partners and Philippine Long Distance Telephone Company (PLDT).
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