Private Equity Fund Investments
Advent to acquire IT services firm Encora from Warburg for $1.5-B: Report
Advent International is to acquire Bengaluru- and Scottsdale (AZ), USA-based Encora, an Indian origin IT services firm, from Warburg Pincus for USD 1.5 billion. Warburg Pincus had mandated JP Morgan to find a buyer for its 2-year old portfolio company. Encora provides services including platform modernisation, cloud migration, data science and predictive analytics, machine learning, IoT, test automation and UI/UX optimization. It has over 5,500 engineers in 20 offices across the US, Mexico, Central & South America, India, and the Asia Pacific, writing code for several clients include AT&T, DHL, identity protection company InfoArmor, real estate investment trust Vereit, gift retailer 1-800-Flowers.com, Dubai Ports World and edtech platform Liaison. While Warburg owns 80% of the company, the rest is held by founder Venu Raghavan and the management. In FY22, the company is expected to clock USD 300-325 million in revenues and around USD 60-70 million in EBITDA. Warburg had acquired Encora (formerly Indecomm Digital) for USD 200 million from existing investor Capital Square Partners and its promoters in 2019. In 2016, Capital Square Partners had acquired close to 60% stake in Indecomm Global Services. That deal, valuing the company at USD 100 million, gave an exit to early investors including WestBridge, Tiger Global and IFC.
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