EQT Announces Successful Completion of USD 924 Million Block Trade for Coforge

EQT Announces Successful Completion of USD 924 Million Block Trade for Coforge

(IN BRIEF) BPEA Private Equity Fund VII (“BPEA EQT”) has successfully sold its remaining 26.6 percent stake in Coforge, an Indian technology services provider listed on the National Stock Exchange. The USD 924 million block trade marked the conclusion of BPEA EQT’s investment in the company, during which it initially acquired a 70.1 percent stake in May 2019. Under BPEA EQT’s ownership, Coforge achieved significant growth, doubling its revenue and EBITDA and crossing the milestone of USD 1 billion in revenue by April 2023. The company’s expansion was driven by strategic initiatives such as strengthening its sales organization, focusing on core verticals, enhancing digital and AI capabilities, and executing successful M&A activities. Coforge’s commitment to sustainability and its position as a key player in the tech services sector have contributed to its success.

(PRESS RELEASE) STOCKHOLM, 25-Aug-2023 — /EuropaWire/ — EQT AB, a purpose-driven global investment organization focused on active ownership strategies, is thrilled to share the successful conclusion of a significant financial transaction involving BPEA Private Equity Fund VII (“BPEA EQT”) and Coforge. BPEA EQT has successfully divested its remaining 26.6 percent stake in Coforge, a prominent player listed on the Indian National Stock Exchange. This milestone was achieved through a strategic USD 924 million block trade, further marking an important step in the dynamic trajectory of both entities.

Coforge, headquartered in Noida, India, has solidified its position as a distinguished technology services provider. The company specializes in offering a comprehensive range of services, including application development and maintenance, infrastructure management, and business process outsourcing. With a keen focus on sectors like financial services, insurance, and travel, Coforge has established itself as a trusted partner for clients seeking innovative solutions.

Central to Coforge’s success are its proprietary platforms, which underpin vital business operations across its core verticals. The company has extended its influence across the global stage, with a presence in 21 countries. Impressively, Coforge operates 26 delivery centers spanning nine different countries, a testament to its commitment to providing exceptional services worldwide.

BPEA EQT, along with co-investors, initially acquired a substantial 70.1 percent stake in Coforge back in May 2019. During its tenure, BPEA EQT has been instrumental in guiding Coforge’s remarkable growth journey. The company has achieved the remarkable feat of doubling its revenue and EBITDA, surpassing the remarkable milestone of USD 1 billion in revenue by April 2023.

This impressive growth can be attributed to a strategic blend of organic endeavors. Coforge has diligently strengthened its sales organization, realigned its strategic focus on the three core verticals, bolstered its digital and AI capabilities, and executed a series of successful mergers and acquisitions. Notably, the acquisition of SLK Global stands out as a prime example of this successful M&A strategy.

As a responsible corporate entity, Coforge takes sustainability to heart. The company has made a resolute pledge to achieve Carbon Neutrality, Water Positivity, and Zero Waste by 2030, a testament to its commitment to the environment and society at large.

The successful divestment by BPEA EQT marks a significant juncture for both organizations. EQT remains committed to fostering growth, innovation, and value creation within its portfolio companies, and this transaction serves as a prime illustration of that commitment. Coforge, with its forward-looking strategies and resilient business model, is poised to continue its upward trajectory in the technology services landscape.

Hari Gopalakrishnan, Partner and Co-Head of BPEA EQT’s Investment Advisory Team in India, commented, “Tech Services is a high conviction thematic for BPEA EQT and Coforge is benefitting from multiple sector tailwinds, such as AI enabling the existing apps estate, replacement of legacy systems and a continuing talent shift to Asia where countries like India have a deep STEM talent pool. The Company’s long and sticky client relationships and deep technical expertise make it integral to the performance of multiple global market leaders in the banking, insurance and travel sectors. We are proud to have supported Coforge and its mission over the past four years. It has been a pleasure partnering with CEO Sudhir Singh and his entire team and we look forward to following the next phase of Coforge’s growth.”

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About BPEA EQT
BPEA EQT is part of EQT, a purpose-driven global investment organization in active ownership strategies. BPEA EQT combines the private equity teams from Baring Private Equity Asia (BPEA) and EQT Asia, creating a comprehensive Asian private equity presence with local teams in eight cities across the region, a 25-year heritage, and more than USD 25 billion of capital deployed since inception. In addition to BPEA EQT, EQT’s strategies in the region include EQT Infrastructure and the real estate division EQT Exeter.

More info: www.eqtgroup.com
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About Coforge
Coforge is a global digital services and solutions provider that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. A focus on very select industries, a detailed understanding of the underlying processes of those industries and partnerships with leading platforms provides us a distinct perspective. Coforge leads with its product engineering approach and leverages Cloud, Data, Integration and Automation technologies to transform client businesses into intelligent, high growth enterprises. Coforge’s proprietary platforms power critical business processes across its core verticals. The firm has a presence in 21 countries with 26 delivery centers across nine countries.

More info: www.coforge.com

SOURCE: EQT AB