Blackstone buys out General Atlantic stake in IBS Software
17 December 2015
Global investment and private equity firm Blackstone has made an investment of around $170 milion (Rs1,132 crore) in Thiruvanthapuram-based travel and transportation technology provider IBS Software. By this investment Blackstone is buying out General Atlantic, an investor in the company.
After the deal, which is expected to close within in a month, Blackstone will become a minority shareholder in IBS. General Atlantic, a leading growth equity firm, has invested in IBS since 2007.
Blackstone is the world's largest alternate asset management firm with assets under management in excess of $334 billion.
''Investment by a global Tier-1 PE is a true endorsement not only of the relevance and significance of what we do and our financial strength, but also a validation of our industry vision, the business model that we operate and standards of corporate governance,'' said V K Mathews, founder and executive chairman of IBS Group.
This is the second time IBS has received capital investment from a global private equity firm . The company employs around 3,000 professionals across nine offices and provides software products to airlines, airports, oil and gas companies.
''There is no material change in the majority shareholding pattern in IBS Software as the initial PE investor General Atlantic, which had invested in 2007, exits as a result of this transaction,'' the company said.
''We foresee significant growth opportunity for IBS, driven by company's deep domain knowledge, its portfolio of products, and roster of referenceable customers,'' said Amit Dixit, Senior Managing Director and Co-Head of Private Equity, Blackstone in India.
Blackstone has been investing in India since 2005 and has made investments over $5 billion in private equity and real estate.