EQT Private Capital Asia Completes Block Trade, Exits Stake in India’s CMS Info Systems

EQT Private Capital Asia Completes Block Trade, Exits Stake in India’s CMS Info Systems

(IN BRIEF) EQT Private Capital Asia has finalized the sale of its remaining 26.7 percent stake in CMS Info Systems Limited, India’s foremost cash management company, through a USD 187 million block trade. During EQT’s ownership, CMS strengthened its market leadership, achieving significant EBITDA growth and margin expansion while implementing robust governance measures. Notably, CMS demonstrated resilience amid crises like India’s currency demonetization and the COVID-19 pandemic. Under EQT’s guidance, CMS transformed into an integrated banking solutions provider, showcasing accelerated growth and positioning itself for further success under CEO Mr. Rajiv Kaul’s leadership.

(PRESS RELEASE) STOCKHOLM, 28-Feb-2024 — /EuropaWire/ — EQT is pleased to announce that BPEA Private Equity Fund VI (“EQT”) has sold its remaining 26.7 percent stake in CMS Info Systems Limited (“CMS” or the “Company”), listed on the Indian stock exchanges, through a USD 187 million block trade.

Headquartered in Mumbai, India, CMS is the country’s largest cash management company, providing ATM cash management, retail cash management, cash-in-transit, ATM managed services, banking automation and AI-based remote monitoring solutions. CMS has over 25,000 employees and associates, servicing more than 150,000 business commerce points across 97 percent of India’s districts.

Under EQT’s ownership, CMS consolidated its market leadership, achieved productivity gains resulting in EBITDA margin expansion, and instituted a best-in-class governance framework. Through a combination of fixed cost optimization, strategic M&A, and new revenue opportunities, the Company successfully navigated two crisis periods, namely currency demonetization in India in 2016 and the COVID-19 pandemic. In addition, it has managed the incoming challenge of new electronic payment systems, emerging more resilient from these events. Since EQT’s investment, the Company has grown its EBITDA by 3x, with an accelerated CAGR of 34 percent over the past two years.

Ashish Agrawal, Partner within EQT Private Capital Asia’s Investment Advisory Team, commented: “CMS continues to benefit from the robust growth in India’s banking sector, supported by the Government’s proactive measures to promote financial inclusion. Over the years, CMS has successfully transformed into an integrated banking solutions provider, and we are proud to have been a part of this journey. It has been an absolute pleasure partnering with CEO Mr. Rajiv Kaul and his entire team. We believe CMS is very well positioned under his able leadership and we wish the Company well for its next phase of growth.”

About EQT
EQT is a purpose-driven global investment organization with EUR 232 billion in total assets under management (EUR 130 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
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About CMS Info Systems Limited
CMS Info Systems Limited is a leading business services company providing logistics and technology solutions to banks, financial institutions, organized retail, and e-commerce companies in India. It plays an essential role in connecting banks, businesses, merchants, and consumers by enabling commerce in a secured environment.

CMS businesses include Cash Logistics, Banking Automation, Managed Services, Remote Monitoring Solution and Technology Solutions. With 25,000+ employees & associates, servicing 150,000+ business commerce points across 97% India’s districts, it is today a market leader in Cash Logistics, ATM Software Solutions and AIoT Remote Monitoring (Banking segment) businesses.

More info: https://www.cms.com/

Media Contact:

EQT Press Office
press@eqtpartners.com

SOURCE: EQT