KKR IN TALKS TO SELL GLOBAL IT FIRM ARICENT FOR $11.5 BN

MUMBAI: Global private equity major KKR & Co. LP is in early stages of discussions to sell Aricent Inc, a California-based global software firm with a strong presence in India, in a deal worth $1-1.5 billion, according to two people aware of the development.

KKR has hired JP Morgan to find a buyer for Aricent, in which KKR holds about 79% stake.

French technology engineering consulting services firm Altran is among the parties interested in acquiring the asset, the first person said on condition of anonymity.

Aricent, previously known as Flextronics Software Systems, was spun off from Flextronics in 2006 when KKR acquired a majority stake in it. KKR had increased its stake from 62.5% to 79% in 2009. Aricent, which claims to employ 12,000 consultants, designers, and engineers at 19 locations worldwide, has presence in the Indian cities of Bengaluru, Gurugram, Pune, Hyderabad, Noida and Chennai.

“KKR is engaged in talks with other private equity investors and strategic buyers. However, the chances are high for the global strategic investors,” said the second person on condition of anonymity.

Sequoia Capital also owns a minority stake in Aricent.

Spokespersons with KKR, JP Morgan and Altran declined to comment, while mails sent to Aricent and Sequoia went unanswered.

A global leader in Engineering and R&D services (ER & D), the Paris-based Altran offers products and services in the areas of aerospace, automotive, defence, energy, finance, life sciences, railway, and telecom.