Private equity firm Apax Funds on May 15 announced that it has signed a definitive agreement to acquire a minority stake in Blackstone-backed travel and logistics SaaS firm IBS Software for approximately $450 million.
Following the transaction, Apax will partner closely with IBS Software’s Founder and Executive Chairman VK Mathews, who will remain the majority shareholder, the firm added.
The transaction is subject to customary closing conditions and is expected to close by the end of Q2 of CY23. Other financial terms of the deal were not disclosed.
"This investment is an endorsement of our strategy and our commitment and contribution to the industry, and we have a shared vision with Apax for the future of the business," VK Mathews, Founder and Executive Chairman of IBS Software, said.
With the deal materialising, Apax becomes the third PE firm to have invested in IBS Software. Blackstone had bought the company's stake in 2015 from General Atlantic, which was with IBS Software since 2007.
“Apax has deep experience in partnering with leading SaaS providers and will be a strategic partner for IBS Software as we embark on a new phase of growth. We thank Blackstone for helping us create real value and a true partnership,” Anand Krishnan, CEO, IBS Software, said.
"Value creation at IBS Software demonstrates our business-building approach to investing and reinforces our conviction in Technology as a sectoral theme," Amit Dixit, Head of Asia Private Equity at Blackstone, said.
Jason Wright, partner at Apax, said it will leverage Apax’s experience in software investment to help IBS Software. “Over the last two decades, IBS Software has invested in products, innovation, and culture, while continuing to scale the business. We believe there is tremendous growth potential ahead."
Founded in 1997 with a vision of redefining the future of travel through technology innovation, IBS Software provides SaaS solutions that power critical operations at the world’s leading aviation, tour and cruise, hospitality and logistics companies.
It provides solutions in modular, cloud-based solutions purpose-built for the travel industry, IBS Software helps travel companies accelerate innovation and drive efficiency across a broad set of core business processes, including cargo and logistics, flight operations, passenger services, loyalty programs, cruise operations, energy & resource logistics and hospitality distribution platforms. It has a team of 4000 professionals across the world.
JP Morgan is acting as the financial advisor to IBS Software and Blackstone, Drew & Napier LLC is acting as legal counsel to IBS Software and Simpson Thacher & Bartlett LLP is acting as legal counsel to Blackstone. Kirkland & Ellis LLP is acting as legal counsel and Jefferies LLC is acting as financial advisor to Apax, the companies said in a statement.
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