In a twist to the ongoing sale process of a majority stake in TA Associates and True North -backed digital engineering and innovation services firm Accion Labs, UAE based Emirates Telecommunications Group Company PJSC or e& ( formerly Etisalat) has now thrown its hat in the ring, multiple industry sources in the know told Moneycontrol.
On September 17, Moneycontrol had reported that Asia-Pacific focused private equity firm PAG, US investment giant Carlyle and London based Apax Partners were among the private equity firms that had progressed to the next round post expression of initial interest in the Pittsburgh headquartered firm, which has multiple Indian offices too.
The report had added that Accion Labs may be valued up to $800 mn, with JP Morgan and Avendus Capital acting as the sell-side advisors.
“ Emirates Telecommunications Group Company PJSC, also known as e& (formerly referred to as Etisalat) has entered the race for Accion Labs and is now doing due diligence. Earlier PAG was seen as a strong contender and had spent a lot of time. Now the transaction is interestingly poised with an overseas strategic player in the fray,” said one of the persons above.
Two other persons confirmed the participation of Emirates Telecommunications Group Company PJSC in the deal and one of them added that a final winner was likely to be picked by November-end or December depending on the pace of negotiations.
All the three persons above spoke on the condition of anonymity.
Email queries to Emirates Telecommunication Group Company PJSC , Accion Labs, TA Associates and True North remained unanswered at the time of publishing this article.
Reminders have been sent and this article will be updated as soon as we hear from any of the firms.
Repeated attempts via calls and messages to elicit a response from executives at Emirates Telecommunications were unsuccessful. When contacted earlier, PAG declined to comment.
Accion Labs is an AI-first, Platform-led Innovation Engineering company and in recent years, firms and governments in the Middle East region, especially UAE and Saudi Arabia , have seen a sharp pivot to AI and data centres, seen as pillars of the post-oil economy.
According to a report by PwC, the Middle East region is expected to accrue 2 per cent of the total global benefits of AI in 2030. This is equivalent to $320 bn, the report said.
TA Associates first invested in Accion Labs in 2020. Then in 2022, True North acquired a significant minority stake from TA Associates.
Incidentally, Apax Partners backs Silicon Valley based digital engineering player Infogain while Carlyle backs Hexaware which had a successful listing earlier this year on the domestic bourses.
Know More About Emirates Telecommunications
Back in 2012, e& ( earlier Etisalat) decided to exit the Indian market following the cancellation of 122 telecom licences by the Supreme Court, including the one held by the former with DB Group as part of a joint venture.
According to its website, founded in Abu Dhabi over 48 years ago, e& has evolved from a telecom pioneer into a technology group. Its footprint now spans 38 countries, offering a portfolio of digital services ranging from advanced connectivity, entertainment, streaming and financial services to AI-powered solutions, cloud computing, ICT, cybersecurity and IoT platforms.
The group is structured around five core business pillars: e& UAE, e& international, e& life, e& enterprise and e& capital. These verticals “empower e& to lead in various sectors, from telecom and digital lifestyle to enterprise services and venture investments”, the website adds.
A closer look at the target firm: Accion Labs
Accion Labs specializes in building AI-enabled digital solutions that help enterprises modernize how they build, operate and optimize technology, according to its website.
It operates across 23 global locations including Bengaluru, Mumbai, Hyderabad, Pune and Goa with over 4,200 plus employees, including more than 1,000 engineers trained in AI and GenAI.
The focus is on five core areas: Digital Engineering, Cloud and Platform engineering, Data and AI, Enterprise System Automation and Agentic AI, supported by proprietary IP and proven delivery frameworks. Incidentally, earlier this month, Accion Labs acquired NetServ, a product engineering and business intelligence firm.
IT Services: M&A Action
In June, TPG-backed digital engineering Altimetrik acquired SLK Software for $600 mn . The last year has seen considerable m&a action in the IT services space, especially RCM or revenue cycle management.
On May 20, Moneycontrol was the first to report that global private equity giant Blackstone had emerged as the front-runner in the ongoing big-bang $1.1-$1.3 bn sale process of EQT-owned healthcare IT services firm AGS Health
Other deals in the segment include the sale of ChrysCapital owned GeBBS Healthcare to EQT for more than $850 million, the sale of a majority stake in Chennai to Texas based Anurag Jain led Access Healthcare to New Mountain Capital for about $2bn and the buyout of Goldman Sachs and Everstone backed Omega Healthcare by Ontario Teachers Pension Plan for around $1.8 billion.
FAQs
Who founded Accion Labs?
The founder and CEO Kinesh Doshi, an alumnus of Kellogg School of Management and IIT Delhi,has over 28 years of expertise in the software and tech industry and has worked earlier with the likes of Deutsche Bank, Citi Bank and Microsoft
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