ChrysCapital exits US-based Infogain to Apax
ChrysCapital has exited Silicon Valley-based Infogain – an IT services provider that helped solidify the US-India cross-border opportunity set – to Apax Partners.
Financial details were not disclosed, although The Economic Times said the deal valued Infogain at around $570 million. ChrysCapital acquired a controlling position in the company in 2015 for $63 million.
Apax is expected to take a 70% stake via its 10th global flagship fund, which closed earlier this year at $11 billion. One of the fund’s anchor LPs, London-listed Apax Global Alpha, said in a filing that it would separately contribute up to EUR22.1 million ($18.2 million) to the transaction. The deal is expected to close in the third quarter this year.
Infogain is noteworthy as one of the early success cases that helped establish the viability of a now thriving US-India deal market. The interregional opportunity is seen as particularly credible in IT and enterprise software, where many India-founded companies have begun targeting US user bases as their core market, often relocating headquarters to be closer to customers.
ChrysCapital is considered a pioneer in this theme, making its first US investment in 2003 with financial services outsourcing company Ephinay. Its standout deals in the country include IT consultancy LiquidHub and specialist software provider GeBBS Healthcare Services. Pre-pandemic, the private equity firm’s India-based management regularly visited US portfolio companies in person, using the occasions to scout further in-country investments.
Founded in 1990, Infogain specializes in “human-centered” digital platform engineering services, which aims to optimize IT transformation through a strong focus on end-user pain points and employee needs. The company claims to have more than doubled its revenue in the past three years and built out its team to almost 5,000 staff globally. There have also been significant upgrades across engineering expertise, cloud capabilities, analytics, and user experience design.
“Our success continues to be driven by our team members, who work on mission-critical projects that enable customer success and help deliver significant value to our clients on a global scale,” Eddie Chandhok, Infogain’s chief delivery officer, said in a statement. “The company is especially focused on delivery excellence, a testament to which is its 73% net promoter score achieved in the previous fiscal year.”
Apax will support growth both organically and in strategic acquisitions, while helping diversify the services offering, expand into new geographics, and further grow the team. Apax has been active in this space in an Asia context as recently as last year, when it agreed to acquire the software products business of Indian IT provider 3i Infotech for around $137 million. The Singapore-based business is now known as Azentio.
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