Global PE player Blackstone will buy out General Atlantic (GA) and other shareholders in IBS Software and invest $170 million (around Rs 1,200 crore) for an undisclosed minority shareholding.
IBS Software is based here and is a leading travel, transportation and logistical technology firm.
The transaction is expected to close within a month, subject to customary regulatory approvals, according to sources in IBS Software.
There is no material change in the majority shareholding pattern in IBS as GA, which had invested in 2007, exits as a result of this transaction.
This is the second time IBS has received capital investment from a global PE (private equity) firm, a recognition widely seen as being indicative of its growing stature in the industry that it operates in, sources said.
It is one of the largest private equity investments in an IT product company in India. The corporate funding by Blackstone will be one of the biggest foreign PE investments into a company in Kerala.
Global presence
IBS has a global presence with nearly 3,000 professionals across nine offices and provides a range of new-generation software products to some of the world’s best airlines, busiest airports, leading cruise lines, major travel distributors and top oil & gas companies.
“Investment by a global tier-1 PE player is a true endorsement not only of the relevance and significance of what we do and our financial strength, but also a validation of our industry vision, the business model that we operate and standards of corporate governance,” said VK Mathews, founder and executive chairman, IBS.
“We see a huge synergy from Blackstone’s portfolio of companies and their extensive experience in the travel and hospitality space,” he added.
Wider footprint
Rajiv Shah, CEO, IBS, said that this partnership will enrich IBS’ board, enhance managerial bandwidth and help them benefit from the expertise of proven professionals to widen its footprint.
“By leveraging Blackstone’s global reach and expertise, we will be able to deliver even more long term value to our employees, customers and shareholders.”
Amit Dixit, senior managing director and co-head, private equity, India, Blackstone, said that IBS is a rare Software as a Service (SaaS) company with intellectual property in the aviation, travel and hospitality verticals across the globe.
“We are impressed by the company’s management team and its track record of delivering mission critical solutions to marquee global customers. We foresee significant growth opportunity for IBS, driven by company’s deep domain knowledge, its portfolio of products, and roster of referenceable customers.”