Warburg Pincus, the present majority shareholder, would be a minor partner
Private equity (PE) major Advent International has acquired a majority stake in Encora, a global digital engineering services company with innovation labs in India and the US, for $1.5 billion. As part of the agreement, Warburg Pincus, the existing majority shareholder of Encora, has sold its stake and now retains a minority shareholding.
“We are thrilled to enter into this partnership with Advent as we continue to scale our differentiated software engineering service offerings,” said Venu Raghavan, chief executive officer (CEO), Encora.
He added, “Advent’s deep business and technology services sector expertise, along with its global footprint, complements Encora’s strengths and creates opportunities to grow our business in key markets around the world.”
Encora is an established leader in outsourced software product development services, using deep technical expertise in machine learning, artificial intelligence (AI), data science, cloud services, and other next-generation digital engineering disciplines to accelerate strategic innovation for tech-enabled companies.
The deal signifies some of the mergers and acquisitions (M&A) activity and demand for companies in the product engineering services space. Earlier this year, Hitachi had acquired GlobalLogic in a $9.6 billion deal, one of the largest in the engineering & research and development (R&D) space.
The engineering and R&D space has, in recent times, become a significant focus for large players as engineering is a key component in the digital transformation story. For the digital segment, it is digital or software product engineering, which is the backbone of all software platform development and digital plumbing.
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