Apax Partners to buy Infogain as ChrysCapital scores an exit

 Apax Partners to buy Infogain as ChrysCapital scores an exit

Apax Partners has struck its second India-linked technology deal in seven months by inking an agreement to acquire Infogain from homegrown private equity firm ChrysCapital.

Infogain, a Silicon Valley-based digital platform and software engineering services company, said the new ownership will enable it to broaden its offerings, pursue acquisitions, expand into new markets, and expand its employee base.

Infogain COO Ayan Mukerji, who had joined the firm three years ago, will become the new CEO. He will replace outgoing CEO Sunil Bhatia.

“Digital engineering and technological excellence continue to be key competitive advantages across industries,” said Shashank Singh, partner at Apax. “Infogain, with its platform strategy and highly talented team, is exceptionally well placed to help drive innovation and support its customers in developing differentiated human-centered solutions.”

ChrysCapital had invested $63 million in the IT consulting and application hosting solutions provider that has extensive operations in India.

Although the deal value was not disclosed, it is estimated to be a cheque worth at least $200 million for ChrysCapital. The actual deal value could be higher.

“Infogain was ChrysCapital’s pioneering initiative in the US that got bolstered with multiple strategic acquisitions,” said Akshat Babbar, vice president at ChrysCapital.

Infogain said it has more than doubled its revenue in the last three years and its global team now has around 5,000 people. The company has upgraded its engineering expertise and added significant digital capabilities in cloud, experience design and analytics.

Infogain was advised by Credit Suisse as the financial advisor. Wilson, Sonsini, Goodrich & Rosati served as the legal counsel to Infogain in the United States. Shardul Amarchand Mangaldas & Co. was the legal counsel in India. E&Y was the financial and tax advisor.

Last December, global PE firm Apax had inked an agreement to acquire the software products business of 3i Infotech Ltd for Rs 1,000 crore ($136 million), sealing its first India deal in almost two years. Its previous India transaction was a $200-million investment in data analytics firm Fractal Analytics in January 2019.

The UK-based PE firm invests mainly in four areas—technology and telecommunications, services, healthcare and consumer—though it has also bet on some financial services companies in the past.

The Capital Quest