The transaction is subject to customary closing conditions and is expected to close in Q3 2021.
The deal where Apax will buy about 70% stake, values Infogain at about $570 million, said people aware of the development. Homegrown PE fund Chryscap owns a controlling stake in Infogain.
Infogain Corp, backed by ChrysCapital, is in talks with private equity funds and strategic investors to sell a controlling stake in the company at a valuation of $500-600 million (Rs 3,650-4,380 crore), ET first reported on June4.
The transaction being discussed include the issue of new shares and the sale of stake by some existing investors, while ChrysCapital is expected to exit its majority stake, ET report added.
In 2015, ChrysCapital had invested $63 million to pick the stake in the California-headquartered Infogain.
Founded in 1990, Infogain provides human-centered digital platform engineering services to its customers. With a team of 5,000 globally, Infogain serves companies in the travel, healthcare, retail/consumer packaged goods (CPG), insurance, telecom, and tech industries, supporting them in their artificial intelligence, experience design and cloud journey, using advanced software technologies.
Apax, in partnership with Infogain’s management team, will look to continue and accelerate Infogain’s journey as a market leading digital transformation partner to its customers, added the statement.
“We are excited to bring Apax on board as we embark on our next growth phase. Apax’s experience, track record and deep knowledge of the industry will help supercharge our growth, organically and through new strategic acquisitions,” said Ayan Mukerji, CEO of Infogain.
“Digital engineering and technological excellence continue to be key competitive advantages across industries, and 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,” said Shashank Singh, Partner at Apax.
Apax Partners LLP has raised and advised funds with aggregate commitments of more than $60 billion.