Singapore-based private equity firm Capital Square Partners has acquired close to 55% stake in Indecomm Global Services, a Bangalore-headquartered technology-enabled services and outsourcing company serving clients in mortgage, healthcare and banking sectors globally.
The Times of India reported that the deal, valued at $90 million (around Rs 600 crore), gave exit to three early shareholders— WestBridge Capital Partners, Tiger Global and International Finance Corporation (IFC).
Indecomm, which was founded in 2003, focuses on high-speed document imaging technologies and capturing data from structured and unstructured forms.
WestBridge, which merged with Sequoia Capital in May 2006 but spun out of the global venture capital firm in November 2011, is one of the early investors in Indecomm. While WestBridge invested $4 million in 2003, IFC put in $2.6 million in 2005.
E-mail queries sent to WestBridge, IFC, Capital Square and Indecomm did not elicit any response till the time of publishing this report.
The deal comes in quick succession for Capital Square which sold India-and North America-based business process outsourcing firm The Minacs Group Inc to US-based Synnex Corporation for $420 million (Rs 2,800 crore) last month.
Capital Square is a private investment firm floated to deploy principal capital of Singapore-based entrepreneur-turned-investors Sanjay Chakrabarty and Aparup Sengupta. Chakrabarty is also founder of MobiApps which provides wireless M2M products and solutions to businesses.
The fund is said to have partnered with some of its sponsors to clinch the Indecomm deal, the report said. In June 2013, it picked a majority stake in CSS Corp, along with Partners Group. In January 2014, it acquired a controlling stake in Minacs, along with CX Partners. It also owns stake in big data analytics company Ananto.
Indecomm was founded by Naresh Ponnapa who was earlier part of the Unilever’s core mergers & acquisitions team in London. He was also COO and operating partner at Connect Capital and was responsible for identifying investment opportunities in the BPO space.
So far, the company has made five acquisitions including US Recordings, Mortgage U, Brainvisa (a WestBridge portfolio company), Encora and MDI Mortgage Dynamics.
In 2012, promoter Ponnapa and private equity investors held discussions with prospective buyers including IBM, Accenture and Cognizant Technology Services to sell off the company though the deal, which would have valued the firm at $250 million, did not materialise.
The company has 3,500 employees at 21 locations in six countries.
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