TA Associates makes minority stake investment in Vietnamese software firm MISA

Photo: MISA

Global private equity firm TA Associates has announced a minority stake investment in Vietnamese software provider MISA Joint Stock Company, according to a statement.

This is the $14-billion-AUM private equity major’s debut investment in Vietnam. Financial terms of the transaction were not disclosed. DealStreetAsia has learnt that TA Associates found deals at around $30 million doable in Vietnam, while the firm typically writes checks of $70-500 million in global markets.

Founded in 1994, MISA provides accounting, financial, enterprise resource planning and business management software to enterprises, government and individuals across Vietnam.

Following the investment, TA Associates managing director and co-head of Asia operations Edward Sippel will join MISA’s board of directors.

MISA claims that it has served more than 70,000 government sector clients and 100,000 small and medium-sized enterprise clients across the country. It has more than 1,500 employees across its offices in Hanoi, Da Nang, Buon Ma Thuot, Ho Chi Minh City, and Can Tho.

The investment will support MISA plans to expand into new markets to promote the sustainable growth of its business, MISA said in an announcement.

“As we seek to aggressively scale our business model and augment growth through a variety of new services, it is critical to have a genuine partner by our side who is fully aligned with and supportive of our go-forward strategy, understands the software industry well and provides impactful value-add,” said  Long Lu Thanh, Founder and Chairman of MISA.

“With its innovative product offerings, talented management team and commitment to customer service, we believe that MISA is well positioned to capitalize on both organic and inorganic growth opportunities,” Sippel said.

TA Associates typically invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. It invests either as a majority or minority investor.

It recently announced its investment in Taiwanese bubble and milk tea company Gong Cha Group. The investment firm expects to close the transaction in early October. In April, it acquired a significant minority investment in India-based infertility treatment provider Indira IVF.

The US-based private equity firm typically invests $75-500 million in its portfolio companies. In May, TA Associates closed its 13th flagship fund at a hard cap of $8.5 billion. The TA XIII fund was launched in the first quarter of 2019 and exceeded its target of $7.5 billion, it said in a statement.

This year, the firm also roped in Andrew Tay from Baring Private Equity Asia to join its Asia Pacific team as a senior vice president in the Hong Kong office.

In Vietnam’s enterprise software sector, some of the recent deals include store management software startup KiotViet landing a $6-million Series A financing from Singapore-based VC firm Jungle Ventures and Indonesian unicorn Traveloka.

Meanwhile, enterprise SaaS firm Base.vn recently secured an early-stage investment led by Alpha JWC.