Integral backs Japan software player TCS
Japanese private equity firm Integral Corporation has invested an undisclosed sum in local IT services and business software company TCS Group.
Integral is currently deploying its fourth flagship fund, which closed on JPY 123.8bn (USD 847m) in 2020. The firm, which filed for an IPO this month on the Tokyo Stock Exchange, distinguishes itself by financing up to 20% of each deal with balance sheet capital.
Founded in 1971, TCS positions itself as one of Japan’s leading corporate groups in any sphere, with 10,000 employees across 54 offices nationwide, including 15 in the Tokyo metro area alone. It is active across public infrastructure, manufacturing, financial services, logistics, healthcare and life sciences, and telecommunications.
IT-related competencies span artificial intelligence, internet-of-things, cloud, robotics, and security among others. There is also an asset management arm called Hoei Jitsugyo that manages real estate owned by the parent company as well as interest in IT equipment leasing and insurance.
The investment comes at a time when TCS is pursuing a “comprehensive business transformation” in response to rapidly changing technology environments and economic conditions, according to Integral. The company’s existing management will oversee this process.
“Integral is committed to respecting the TCS Group's corporate philosophy of “creating and building the future of the information society,” aligning its vision with those of the TCS Group,” the private equity firm said in a statement.
“Integral will provide its accumulated management expertise through the i-Engine, and its expert network, working together with TCS Group on the business transformation over the long term.”
The “i-engine” is Integral’s dedicated corporate value enhancement function. Work in this vein typically includes support with M&A and partnerships, as well as team management issues such as recruiting and compensation systems design.
Recent activity in the IT services space includes the sale of BTC to Capgemini last June for an undisclosed sum. BTC – or Bigtree Technology & Consulting – was acquired in 2018 through Integral’s third fund, which closed on JPY 73bn a year earlier.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.