ChrysCapital acquires US-India IT player Xoriant for $350m
India’s ChrysCapital Partners has acquired Xoriant, a US-headquartered but primarily India-based software engineering and IT provider, for about USD 350m.
Xoriant was founded as TekEdge in 1990 with a view to offering corporate clients digital product engineering, software development, and technology services that shorten time to market and ensure competitiveness. It focuses on financial services, healthcare, retail, telecommunications, automotive, and industrial manufacturing.
The company claims capacities in cloud, infrastructure and security, big data and analytics, data engineering, and internet-of-things among other domains. It operates across 17 bases globally, including eight in India. More than 70% of the 5,000-strong staff is in India. ChrysCapital is expected to support new technology and intellectual property developments.
“My interactions with [founder and CEO Girish Gaitonde] and Xoriant team during the last several months have made me realize how special the company is,” Sanjay Jalona, an operating partner at ChrysCapital, said in a statement.
“Everyone at Xoriant brings unparalleled product and application engineering heritage and displays core values of the company – customer first, passion for technology and innovation, respect for individual, ownership and excellence, and open and collaborative culture.”
Jalona, formerly CEO of the IT division of Indian engineering conglomerate Larsen & Toubro, joined ChrysCapital last July as an operating partner based in the US. ChrysCapital was an early mover in the US-India corridor in IT talent and services as a theme for private equity, with management regularly visiting the US to scout in-country investments.
ChrysCapital’s first US investment was financial services outsourcing company Ephinay in 2003. It had significant success with IT consultancy LiquidHub, taking a 40% stake in 2013 as part of a USD 53m growth round and selling it to a European strategic in 2018 at a valuation of USD 500m.
The private equity firm’s standout US IT investment is Infogain, which it sold to Apax Partners last year for about USD 550m generating a 6.4x return.
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