Private equity firm Apax Partners has acquired India’s software R&D services provider GlobalLogic, which has significant operations in Argentina and Chile. Terms of the transaction were not disclosed but a report in The Times of India pegged the deal at $420 million.
The Mclean, VA-headquartered company offers to assist technology companies in developing software. GlobalLogic grew into a global firm over the past decade, expanding its operations to both matured and emerging markets. The company currently employs more than 6,000 people, a quarter of them in Argentina.
Until yesterday, the company was backed by different private funds, including WestBridge Capital, New Atlantic Ventures (NAV), New Enterprise Associates (NEA) and Sequoia Capital, and there were rumors that it was planning to go public. According to The Times of India, the company recently shelved its IPO plans and appointed JP Morgan to find a buyer.
“Over the past decade, we have built GlobalLogic into a 6,600 person-strong global innovation engine,” GlobalLogic CEO Shashank Samant said. “The decision to bring in Apax as an investor is based on continuing and growing the momentum and market share that we’ve gained and will allow us to significantly increase our global reach for clients in key markets.”
In India, GlobalLogic competes with Symphony Technology and Persistent Systems in the outsourced product development or research and development space. The firm was launched in 2001 under the name IndusLogic but soon launched an office in the United States and renamed itself GlobalLogic.
Apax Partners owns another software firm called iGate, but GlobalLogic is expected to operate independently with Shashank remaining at the helm. The transaction is likely to be closed by the end of this year.