GlobalLogic- the OPD major has hit the jackpot. Apax Partners – a global private equity firm has entered into an agreement to acquire GlobalLogic. While the company in its release did not divulge on the deal size, however a report in ET puts it at $ 420 million ( around Rs 2,578 crore)
Sumir Chadha, Managing Director, WestBridge Capital, reflecting on the acqsuition wrote on the company’s blog : ” We are very pleased to see GlobalLogic take this next step in expanding its reach in product design and engineering around the world. As the largest and an early shareholder in GlobalLogic since 2006, it has been exciting to be a part of GlobalLogic’s journey to this point, and we look forward to seeing GlobalLogic continue its growth and success in the future,”
This acquisition puts Apax Partners significantly upping its ante in the India outsourcing space. This is second big ticket buy for Apax – the first one being the $ 1.2 billion Patni deal which was done through iGate couple of year back.
Global Logic is leading player in the OPD space and sources say that acquisition will further enable GlobalLogic to deliver design and engineering solutions to companies worldwide, and continue as a leading provider of software R&D services. The transaction is subject to customary closing conditions and is expected to be completed before end of this year.
GlobalLogic’s CEO Shashank Samant said., “Over the past decade, we have built GlobalLogic into a 6,600 person-strong global innovation engine. The decision to bring in Apax as an investor is based on continuing and growing the momentum and market share that we have gained and will allow us to significantly increase our global reach for clients in key markets. Apax is the ideal partner to help us do this.”
Salim Nathoo, partner at Apax Partners, said, “Shashank and the team at GlobalLogic have built an impressive platform with global delivery, strong product engineering capabilities, and a long and growing list of partnerships with world-class clients. We are excited to partner with the GlobalLogic team to support their continued development of exceptional product design and engineering capabilities worldwide.”
Prior to the acquisition, GlobalLogic has been funded by, among others, WestBridge Capital, New Atlantic Ventures (NAV), New Enterprise Associates (NEA) and Sequoia Capital.
Royal Bank of Canada and Credit Suisse acted as financial advisors to Apax and will provide financing for the transaction.