Apax invests $200m in India, US-based Fractal Analytics
Apax Partners has agreed to pay $200 million for a significant minority stake in India and US-based data analytics provider Fractal Analytics.
The private equity firm will acquire secondary stakes from existing shareholders, including Malaysia’s Khazanah Nasional, in addition to making a primary investment. According to The Economic Times, the transaction will give Apax a 45% interest in the company.
Khazanah invested $100 million in Fractal in 2016 for what was said to be a 36% stake and worked closely with the company on streamlining the board and supporting product innovations. This effort followed a $25 million commitment from TA Associates in 2013.
“The data and analytics sector is attractive and growing rapidly as companies increasingly see it as a core strategic function of their business,” Rohan Haldea, a partner at Apax, said in a statement. “We look forward to working with them to scale the business further.”
Founded in 2000, Fractal uses artificial intelligence (AI) to process and analyze data on consumer behavior for blue-chip corporate clients in the financial services and retail sectors. The company operates across North America, Europe, and Asia Pacific with four offices in India, as well as bases in China, Singapore, and Australia.
Fractal positions itself as one of the world’s best-funded AI providers and said it plans to achieve $1 billion in annual revenue in an unspecified timeframe on the back of expanding demand for enterprise AI services. The latest investment will be used to drive growth both organically and through M&A, as well as for further investment in AI products and research.
This is Apax’s 12th investment in the technology services space globally. Previous exposure in India includes the acquisition of GlobalLogic for $420 million in 2013, much of which was exited to Partners Group last year. In 2015, the firm acquired an approximately 23% stake in Pune-based Zensar Technologies for $129 million, providing an exit for Electra Partners.
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