Outsourced software product development services provider Encora has now gone into the fold of Advent International after the PE firm acquired a majority stake from its US peer Warburg Pincus.
Analysts say Warburg must have made a huge profit from the transaction, given that the investment firm had acquired a controlling stake in the IT firm for a mere $200 less than three years ago.
Encora is now valued at $1.5 billion, according to the company’s statement.
The IT provider was previously known as Indecomm Digital. In October 2020, it changed its name to Encora after bringing together two of its subsidiaries, Nearsoft and Söoryen Technologies, under a single umbrella.
Encora’s LatAm footprint widened substantially in 2020 when it bought nearshore IT services provider Avantica, which runs delivery centers in several countries, including Peru, Bolivia, Costa Rica, and Colombia.
The rising demand for digital transformation services was also the reason for Encora’s sudden leap in valuation. The IT software developer is estimated to post $350 million in revenue for fiscal 2022.
Its global headcount now stands at around 6,300 and its clients include the likes of AT&T, DHL, and InfoArmor.