Singapore state investment firm Temasek has acquired a minority stake in US-based digital and IT services firm UST Global Inc., the latter said in a statement on Wednesday.
Both companies did not disclose the deal value and Temasek’s holding.
However, a spokesperson from UST Global told VCCircle in an emailed response that Temasek would invest around $250 million.
Temasek is the IT firm’s first institutional investor, the spokesperson added.
The development comes a little over a month after VCCircle first reported that UST Global was looking to raise funds from Temasek.
“The partnership with Temasek will allow us to further our reach so that we can partner with our clients in designing their digital impact strategies,” said Sajan Pillai, chief executive officer of UST Global.
Temasek declined to comment on the deal value.
“Apart from organic expansion, we see significant avenues for growth through the acquisition of niche players with complementary offerings. Our relationship with Temasek will help us achieve our strategic objectives,” said Krishna Sudheendra, chief financial officer of UST Global.
UST Global and its subsidiaries, including those in India, cater to technology and innovation requirements of multinational corporations by providing end-to-end solutions including digital customer engagement, data analytics, cloud consulting, product engineering, automation and cybersecurity solutions, according to the release.
The company has regional headquarters in California, Singapore and London, and has over 35 offices across the world.
Its clients include enterprises in banking and financial services, healthcare, insurance, retail, technology, manufacturing, shipping and telecom sectors.
In India, the company operates in Bengaluru, Chennai, Coimbatore, Kochi, Thiruvananthapuram, Mumbai, Bhopal and Delhi.
Avendus Capital and DBS Bank were the financial advisers to UST Global for the transaction.
UST Global is owned by the Indian-origin Chandaria family, which is based in Kenya. The Chandaria family-owned conglomerate Comcraft Group runs businesses in steel, plastics and aluminum and operates manufacturing facilities in 45 countries.
Paras Chandaria, who runs the Singapore division of Comcraft, heads UST Global.
The investment arm of the Singapore government has renewed its interest in India after going slow for two years. Since May 1 this year, Temasek has signed five deals worth $1 billion. The investments span sectors such as industrial manufacturing, logistics, financial services, and technology.
Last month, along with a consortium of France-based Schneider Electric SE, Temasek bought the electrical and automation division of Larsen & Toubro for Rs 14,000 crore ($2.1 billion).
Temasek is also in talks to pick 30-35% stake in Asia Healthcare Holdings, a healthcare platform of TPG Growth, for $100 million and to invest in baby products retailer FirstCry, media reports have stated.