CX Partners nears SIS India investment – report
CX Partners is closing in on a INR5 billion ($89.5) investment in private security firm Security and Intelligent Services India (SIS India), one of the pioneers of the country's private security industry. The deal, which will facilitate the exit of New York-headquartered hedge fund DE Shaw, is expected to value the company at about INR20 billion.
CX will end up with a 26.2% holding in SIS, although the deal is still subject to approvals from the Foreign Investment Promotion Board.
The PE will invest in two tranches of INR2.5 billion, according to documents filed with the government, The Economic Times reported. The first tranche of will include a direct capital injection of INR850 million in SIS, with the remaining INR1.55 billion to be used to buyout DE Shaw.
DE Shaw invested less than INR500 million in 2008 for a 14% stake in SIS, effectively funding SIS' acquisition of United Technologies' Australian guarding and mobile patrol arm.
Founded in 1974 by Ravindra Kishore Sinha, SIS designs, develops and delivers security solutions include manned guarding of sites, secured transportation of cash, corporate investigation assignments and integration of electronic security gadgets. The company reported revenue of INR25 billion for its 2011-2012 financial year.
CX Partners was founded in 2008 by former Citigroup Venture Capital International (CVCI) head Ajay Relan. Last year, the firm reportedly invested $20 million in India's frozen yogurt business Cocoberry Retail, a subsidiary of local food business operator Horizon RHI Group.
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