Private Equity

PE Fund Investments

Carlyle to pick up 28% stake in engg services co. Quest for $500-M

Press Release   Economic Times  

The Carlyle Group, via Carlyle Asia Partners, is to invest USD 500 million to acquire around 28% stake in Bangalore-based engineering services firm Quest Global at USD 1.8 Billion valuation, buying out existing investors Bain Capital, Advent International and GIC of Singapore. Quest founder Ajit Prabhu will also invest USD 120 million to hike his stake in the company to 40% from the present 32%. The company will also make a USD 180-200 million share buyback. Quest Global is a player in engineering, research and development (ER&D) services for the design, product development and operations of complex engineering systems that range from medical devices to aircraft in-seat power modules. It also writes software for MRI and CT scans, and for analysing those images. Barclays, J.P. Morgan, BNP Paribas served as transaction advisors to Quest. Latham & Watkins was the legal advisor to the company. Deutsche Bank and KPMG served as translation advisors to Carlyle, while Clifford Chance and Trilegal were the investor's legal advisors. Barclays, BNP Paribas, Citibank, Deutsche Bank, HSBC, ING, J.P. Morgan, Nomura, Standard Chartered Bank, Allen & Overy and Linklaters helped arrange financing for the transaction.

From the Venture Intelligence PE-VC Deal Database: The Carlyle Group had first invested in Quest in 2003 and subsequently exited via a buyback in 2007. ChrysCapital and TrueNorth are other PE investors in the company (investing as part of a $150 M round in 2021).