Technology firm IBS Software on Wednesday said global private equity (PE) fund Blackstone Group Lp has acquired a minority stake in the company by buying out General Atlantic and some other shareholders for $170 million.
The transaction is expected to close within a month, subject to regulatory approvals.
Travel, transportation and logistics software firm IBS has nearly 3,000 employees across nine global offices and provides software products to airlines, airports, cruise lines, travel distributors and oil and gas companies. General Atlantic invested in the company in 2007. Blackstone is the world’s largest alternate asset management firm with assets under management of over $334 billion.
“Investment by a global tier-1 PE (private equity) 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. We see a huge synergy from Blackstone’s portfolio of companies and their extensive experience in the travel and hospitality space,” said V.K. Mathews, founder and executive chairman of IBS Group.
“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,” said Amit Dixit, senior managing director and co-head of private equity in India at Blackstone, in a statement.
Blackstone, which established its office in India in August 2005, has since then committed nearly $5 billion in the country. Its corporate PE arm invests out of Blackstone Capital Partners VI global fund, which has a corpus of $16.2 billion. The PE arm of Blackstone in India has committed around $1.9 billion in equity across 20 transactions.
This year, the fund has sold two of its investments and expects to sell a few more. In total, it has exited four investments, including Intelenet Global Services, Agile Electric, CMS Infosystems and Emcure Pharmaceuticals Ltd. The fund has also made a partial exit from S.H. Kelkar and Co. Pvt. Ltd through an IPO. Another Blackstone portfolio company, Nuziveedu Seeds Ltd, is also expected to launch an IPO in the coming months.