Everstone, Solmark to buy controlling stake in IT services firm Servion for $66M

Private equity firms Everstone Capital and US-based Solmark have signed an agreement with Servion Global Solutions Ltd, a customer interaction management solutions provider, to acquire a controlling stake in the company for Rs 403 crore ($65.08 million), as per a release.

The investment has been done through Evertech Pte Ltd, the Everstone Group’s technology investing platform. It will provide an exit to most of the existing financial investors and non-working promoters.

The firm did not disclose the name of the sellers but Servion had previously raised funding from Sansar Capital and Cisco.

As part of the deal, Prateek Dhawan, managing director of Everstone Capital and Puneet Pushkarna, general partner of Solmark, will be joining the board of Servion.

“Servion’s cutting edge solutions and outstanding management team offer a unique and strong investment opportunity. Combining efforts with our long standing friends and partners at Solmark will enable us to propel the company’s growth to the next level," said Dhawan.

Founded in 1991, Chennai-based Servion offers consulting, hosted and managed services, product engineering and professional services. The firm has its additional offices in the Middle East, Africa, the Asia Pacific, Australia and Europe. With more than 600 customers and over 1,000 installations spread across 60 countries, Servion’s products and solutions handle more than 7 billion voice/FAX/ACD/Web/e-mail interactions per year. The firm had revenues of Rs 350 crore in FY14.

"We aim to widen our footprint, design and adopt new age technologies, deepen our understanding of customer problems and as a result, positively impact every single interaction happening across the world. To enable us to get there, we need to make strategic investments in several critical areas, and this partnership with Everstone and Solmark will help us address that," said Balakrishnan K, CEO & MD of Servion.

Puneet Pushkarna, general partner, Solmark, said, “We look forward to working with the talented management team and employees at Servion to accelerate the company’s growth and strengthen its leadership as a complete CIM solution provider.”

Solmark is a US-based equity fund founded by a group of tech entrepreneurs. It has a presence in the Silicon Valley, New York, Washington DC and Singapore.

Avendus Capital acted as a financial advisor on this transaction.

For Everstone this is the fourth India investment this year after Tikona, fashion label Ritu Kumar and Madurai-based HR solutions firm Aparajitha.

(Edited by Joby Puthuparampil Johnson)

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