Sequoia has increased exposure in General Atlantic-backed Infotech Enterprises by purchasing shares in the secondary market worth Rs 12.5 crore (~0.5%). It hiked stake through an investment entity Ironwood Investment that had earlier bought around 1% in September-December 2009 quarter (estimated at around Rs 15-20 crore).
VCCircle has learnt that Ironwood Investment is a Sequoia Capital entity. In response to a VCCircle email seeking confirmation, Sequoia declined to offer any comment.
Infotech Enterprises is a global IT services company with over 7,000 employees specialising in engineering services, Geographic Information Systems (GIS), and IT services. It caters to industries such as aerospace, automotive, energy, government, hitech consumer & medical devices, marine, rail, retail, telecom and utilities. The company is backed by General Atlantic and airconditioning giant Carrier who hold about 14% each.
The company has been on an inorganic expansion spree. Its management had, a few months ago, said it is looking at an aggressive acquisition strategy in the avionics and nuclear power engineering space besides eyeing cockpit electronics with a couple of deals expected in the current quarter.
The company had also said it would focus on value buying with about Rs 400 crore cash reserves which is growing about 10% every quarter.
In January, it had announced acquired the Illinois-based Daxcon Engineering Inc., a company engaged in the business of providing product design engineering services to original equipment manufacturers. Sometime ago it had entered an agreement with IDT Inc — US based firm engaged in the business of design and sale of semiconductor products– to acquire the operational assets of its Hyderabad office.