The Canada Pension Plan Investment Board (CPPIB) has reached a deal with private equity firm Apax Partners to acquire a 48% stake in India’s software engineering services provider GlobalLogic.
Headquartered in San Jose, California, GlobalLogic has employed more than 11,000 people in delivery centers across the world, including Argentina and Chile. In 2013, Apax Partners acquired it for $420 million.
GlobalLogic has been growing steadily, setting up delivery centers in several countries, including Slovakia, Canada, and Poland.
“In the past three years with Apax, we’ve enjoyed a 20% compound annual growth rate (CAGR), consistently outperforming the broader product engineering services (PES) market,” said Shashank Samant, CEO, GlobalLogic.
GlobalLogic helps enterprises build innovative digital products that enhance customer engagement and user experience. It’s annual revenue reportedly totals around $400 million.
The firm was launched in 2001 under the name IndusLogic but soon launched an office in the United States and renamed itself GlobalLogic.
“This is a compelling opportunity for CPPIB to back a highly successful management team in what is a rapidly growing and evolving software engineering services sector,” said Ryan Selwood, Managing Director, Head of Direct Private Equity, CPPIB.
Venture capital firms say they are foreseeing a huge demand for software R&D services, adding that the rise of cloud and Internet of Things (IoT) has widened the opportunity for software developers.
The deal is one of the biggest private equity transactions in India’s technology sector after Capgemini’s $4 billion acquisition of iGate, which was also backed by Apax.