Private equity giant Apax Partners has acquired a product development and outsourcing firm GlobalLogic. The terms of the deal were not disclosed, but according to a report released by The Times of India, the buyout price could be USD 420 Mn. The transaction is subject to customary closing conditions and is expected to be completed before the end of 2013.
According to an official announcement, GlobalLogic business will be acquired by ODSA Topco Limited (“ODSA”), a company backed by Funds advised by Apax Partners. Moreover, GlobalLogic will continue to deliver design and offer engineering solutions to companies worldwide and operate as a leading provider of software R&D services.
“Over the past decade, we have built GlobalLogic into a 6,600 person-strong global innovation engine,” said Shashank Samant, CEO at GlobalLogic. “The decision to bring in Apax as an investor is based on continuing and growing the momentum and market share that we’ve 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.”
GlobalLogic, so far was backed by a number of venture capital investors including WestBridge Capital, New Atlantic Ventures, New Enterprise Associates and Sequoia Capital. In 2010, the company raised its so-called pre-IPO investment from Goldman Sachs Asset Management.
Founded by IITians Rajul Garg, Manoj Agarwal, Sanjay Singh and Tarun Upadhyay in 2001, GlobalLogic has its design and engineering centers around the world. Working with startups and business leaders in digital media, electronics, healthcare, infrastructure, finance, retail, and telecom industries, the company is headquartered in California, United States.
Prior to this investment Apax Partners, in early 2011, invested upto USD 480 Mn in a Nasdaq-listed information technology firm iGate to back its acquisition of Patni Computers. The firm also invested in one of the most reputed healthcare chain ‘Apollo’ in 2007 which it eventually exited from with significant returns.
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