ETtechWarburg Pincus is in early-stage negotiations to sell a controlling stake in Encora, a US-headquartered Indian-origin IT services firm it owns, taking advantage of a deal spree in the sector in recent months, people in the know said.
The private equity firm, which owns 80% of the company, has reached out to funds including Blackstone, Baring Private Equity Asia, KKR, Carlyle, Bain Capital as well as Silverlake Partners to sell its entire stake in a deal valuing the firm at around $1.5 billion (Rs 11,260 crore), they said.
A digital engineering services provider, Arizona-based Encora employs more than 5,500 engineers in 20 offices across the US, Mexico, Central & South America, India and Asia-Pacific.
Mails sent to Encora, Warburg Pincus and Bain Capital did not elicit any responses till press time Tuesday. Spokespeople for Baring Private Equity Asia, Blackstone, KKR, Silver Lake and Carlyle declined to comment.
Encora provides services including platform modernisation, cloud migration, data science and predictive analytics, machine learning, IoT, test automation and UI/UX optimisation.
Its major clients include AT&T, DHL, identity protection company InfoArmor, real estate investment trust Vereit, gift retailer 1-800-Flowers.com, Dubai Ports World and edtech platform Liaison.
Indecomm Digital was renamed Encora last year, bringing together two of its subsidiaries, Nearsoft and Söoryen Technologies, under a single umbrella. In June 2021, Encora’s other subsidiary and nearshore IT services provider, Avantica, was also brought under the Encora umbrella.
Indecomm acquired Mexico-based software engineering firm Nearsoft in 2017, and Söoryen Technologies in New York City in 2018.
Encora was founded in 2005 to provide product development services to global software product companies. In 2008, it merged with Bengaluru-based Indecomm Corp.
In 2016, Singapore-based private equity firm Capital Square Partners acquired close to a 60% stake in Indecomm. The deal, valuing the company at $100 million, gave exit to early investors WestBridge Capital Partners, Tiger Global and International Finance Corp.
Encora is estimated to post revenue of around $350 million and an operating profit of $60 million in fiscal 2022, people in the know said.
According to a joint McKinsey-Nasscom study, the $100 billion global digital & software engineering services market is projected to see a 17% compounded annual growth rate between 2020 and 2025.
The private equity firm, which owns 80% of the company, has reached out to funds including Blackstone, Baring Private Equity Asia, KKR, Carlyle, Bain Capital as well as Silverlake Partners to sell its entire stake in a deal valuing the firm at around $1.5 billion (Rs 11,260 crore), they said.
JP Morgan has been mandated to find a buyer. Warburg had acquired Encora (formerly Indecomm Digital) in 2019 for $200 million from Capital Square Partners and its promoters.
A digital engineering services provider, Arizona-based Encora employs more than 5,500 engineers in 20 offices across the US, Mexico, Central & South America, India and Asia-Pacific.
Mails sent to Encora, Warburg Pincus and Bain Capital did not elicit any responses till press time Tuesday. Spokespeople for Baring Private Equity Asia, Blackstone, KKR, Silver Lake and Carlyle declined to comment.
Encora provides services including platform modernisation, cloud migration, data science and predictive analytics, machine learning, IoT, test automation and UI/UX optimisation.
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Its major clients include AT&T, DHL, identity protection company InfoArmor, real estate investment trust Vereit, gift retailer 1-800-Flowers.com, Dubai Ports World and edtech platform Liaison.
Indecomm Digital was renamed Encora last year, bringing together two of its subsidiaries, Nearsoft and Söoryen Technologies, under a single umbrella. In June 2021, Encora’s other subsidiary and nearshore IT services provider, Avantica, was also brought under the Encora umbrella.
Indecomm acquired Mexico-based software engineering firm Nearsoft in 2017, and Söoryen Technologies in New York City in 2018.
Encora was founded in 2005 to provide product development services to global software product companies. In 2008, it merged with Bengaluru-based Indecomm Corp.
In 2016, Singapore-based private equity firm Capital Square Partners acquired close to a 60% stake in Indecomm. The deal, valuing the company at $100 million, gave exit to early investors WestBridge Capital Partners, Tiger Global and International Finance Corp.
Encora is estimated to post revenue of around $350 million and an operating profit of $60 million in fiscal 2022, people in the know said.
According to a joint McKinsey-Nasscom study, the $100 billion global digital & software engineering services market is projected to see a 17% compounded annual growth rate between 2020 and 2025.
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