Private equity firm Apax Partners has acquired GlobalLogic, a product development service company for a reported $420 mn.
The GlobalLogic business will be acquired by ODSA Topco Limited, a company backed by Funds advised by Apax Partners. The transaction is expected to be completed before the end of 2013, the company said.
GlobalLogic which was rumored to go for an IPO until recently, now employs 6600 people.
The GlobalLogic acquisition will see the exit of investors such as WestBridge Capital, New Atlantic Ventures (NAV), New Enterprise Associates (NEA) and Sequoia Capital.
The software R&D services provider was founded by IITians Rajul Garg, Manoj Agarwal, Sanjay Singh and Tarun Upadhyay in 2001.
This is one of the large deals India’s IT outsourcing business has seen recently. In 2011, Apax backed iGate bought India’s 6th largest IT services company Patni Computer System in a $1.2 bn deal and subsequently delisted the company from the exchanges. Funds advised by Apax have invested about €5.5 billion in tech and telecom buyouts since 1993.
This is the second big deal we are seeing in the Indian IT space. In June, bus ticketing company redBus was acquired by South Africa based Naspers group for Rs 800 cr (read: redBus acquisition details).