US-based Sowell’s PE arm backs leveraged management buyout of analytics firm Vedicsoft

Dallas-based privately-held investment firm Sowell & Co's private equity group has backed the leveraged management buyout of US-headquartered business analytics solutions provider Vedicsoft Solutions, led by its president & CEO Nick Sharma, according to a statement.

The terms of the transaction were not disclosed but Sowell's PE unit typically backs management buyouts, recapitalisations and corporate divestitures by investing $2-20 million in companies that typically have less than $10 million of EBITDA.

Meanwhile, Vedicsoft has also acquired Hyderabad-offshore delivery and training company Uclid IT Services Pvt Ltd, as part of the larger transaction.

Founded in 1999, by two technology entrepreneurs, Venkat Yerubandi and Bhat Dittakavi, Vedicsoft serves both Fortune 500 and mid-market customers in the insurance, life sciences, finance, manufacturing, retail, telecom, government, and entertainment industries.

Vedicsoft is headquartered in Iselin, New Jersey and has $40 million in revenue and over 400 employees across the US and India.

It provides information technology services in data management, business intelligence (BI), and business integration areas. In particular it offers enterprise data management services, which include data integration, data synchronisation, data consolidation, data mining and master data management; BI services, such as business analytics and performance management; and enterprise data quality analysis services, including data profiling and cleansing.

"This was a strategic move to unleash enormous growth potential for our company. This autonomy will allow us to continue to innovate and further expand our one-of-a-kind network and business analytics expertise to better serve our world-class clients,” Sharma said in the statement.

The company is looking to augment its focus on industry verticals starting with the telecom industry and further strengthen its presence in key data intrinsic industry verticals like retail, media and advertising, finance, and life sciences, among others, the statement said.

"Vedicsoft is a great example of the kind of company we look for as investors and brings a cohesive, quality management team, strong client relationships and integrated technology solutions in the big data space,” Will Schramme, managing director at Sowell & Co, said in the statement.

Besides PE, Sowell also has interests in oil &gas and real estate sectors.

While Texas Capital Bank provided the senior financing, Farragut Capital Partners provided the mezzanine financing for the transaction.

Hyderabad-based boutique investment bank Finvista was the sole M&A advisor to the founders of Vedicsoft Solutions in the deal.

(Edited by Joby Puthuparampil Johnson)

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