BPEA EQT, the Asian private equity (PE) arm of Swedish investment firm EQT, is acquiring a majority stake in Indium Software, a digital engineering company based in India, for an undisclosed amount, confirming DealStreetAsia’s report in October.
In a statement, EQT said the acquisition will be carried out through BPEA EQT Mid-Market Growth Fund, which achieved a first close in 2022 with approximately $400 million in commitments.
BPEA EQT will acquire the stake from existing shareholders and will continue to support Indium in its next phase of growth, per the announcement. Indium co-founder Ram Sukumar will continue to lead the firm as its CEO.
Co-founded in 1999 by Sukumar and Vijay Balaji, Indium provides tech solutions to enterprise customers and digital companies. The services provided by its more than 3,000 employees include product engineering, low-code development, data engineering, AI/ML, digital assurance, and end-to-end gaming tech.
Indium caters to companies that are either reinventing for the digital environment or augmenting their existing business. According to media reports, its revenue jumped 78% to Rs 230 crore in the 2021-22 fiscal on the back of a strong demand for digital transformation services from clients across the global market.
Indium, headquartered in Chennai, claims to have grown at a CAGR of around 50% over the last year years.
“Over the years, we have embraced multiple technology shifts, and today, have become a trusted partner to several enterprises accelerating their digital and AI journeys,” Sukumar said.
Indium will draw on EQT’s experience in tech services, in-house digitalisation capabilities, and global network of industry experts. In Asia, BPEA EQT has invested about $11 billion in the tech sector.
“We are confident of drawing on EQT’s extensive value creation playbook in tech services and supporting the company on its strong growth momentum,” Hari Gopalakrishnan, partner and co-head of BPEA EQT India, said.
The deal is expected to close in the first quarter of 2024. Avendus Capital acted as the exclusive financial advisor to Indium Software and its shareholders on the transaction.
Established in 1997, BPEA or Baring Private Equity Asia earlier used to operate as a separate entity. EQT agreed to acquire it last year in a deal worth 6.8 billion euros ($7.5 billion), creating BPEA EQT. BPEA separately runs a credit arm.
Last month, the firm also announced that the BPEA EQT Mid-Market Growth Fund had agreed to acquire a majority stake in Japanese HR software provider HRBrain.