Canada Pension Plan Investment Board (CPPIB) will acquire 48 per cent stake in IT consultancy GlobalLogic from private equity firm Apax Funds.
No financial details of the deal were disclosed. Apax funds will retain an equal stake to CPPIB in the company, a statement said.
Founded in 2000, San Jose-based GlobalLogic is a product engineering services company with over 11,000 employees worldwide. It has a significant presence in India with engineering centres at Hyderabad, Noida, Gurgaon, Nagpur, and Bangalore.
“This is a compelling opportunity for CPPIB to back a highly successful management team in what is a rapidly growing and evolving software engineering services sector,” CPPIB Managing Director, Head of Direct Private Equity, Ryan Selwood said.
CPPIB looks forward to working with the GlobalLogic management team and Apax on the company’s next phase of growth, he added.
“GlobalLogic has seen significant returns from early investments in customer focus and in building differentiated capabilities to drive digital transformation for a number of large customers,” said Rohan Haldea, Partner, Apax Partners.
Apax had acquired GlobalLogic in 2013 for USD 420 million from a group of financial investors, including a PE fund managed by Goldman Sachs, Westbridge, New Atlantic Ventures and Sequoia.
“In the past three years with Apax, we’ve enjoyed a 20 per cent plus compound annual growth rate (CAGR), consistently outperforming the broader product engineering services (PES) market,” said Shashank Samant, CEO, GlobalLogic.