Three PEs Vie for 25% Stake in Health­care IT Firm In­de­gene

Is look­ing to raise pri­mary cap­i­tal to fund its ac­qui­si­tion and ex­pan­sion plans; TA As­so­ciates, Kedaara Cap­i­tal and Apax Part­ners are in race for stake

The Economic Times - - Companies: Pursuit Of Profit - Sneha.Shah@ times­group.com

Mum­bai: Global pri­vate eq­uity funds TA As­so­ciates, Kedaara Cap­i­tal and Apax Part­ners are in the race to ac­quire around 25% stake in In­de­gene, a health­care IT firm backed by In­fosys co­founder NS Ragha­van. The com­pany, which has $75 mil­lion, or about ₹ 500 crore, in topline rev­enues, is be­ing val­ued at around $400 mil­lion, or about .₹ 2,665 crore, three peo­ple with di­rect knowl­edge of the de­vel­op­ment told ET.

“The three funds have sub­mit­ted their bids to ac­quire around 25% stake in the com­pany. Soon a fund will be shortlisted,” one of them said.

The Ben­galuru-head­quar­tered In­de­gene is look­ing to raise pri­mary cap­i­tal to fund its ac­qui­si­tion and ex­pan­sion plans.

Ac­cord­ing to sources, ex­ist­ing in­vestors could sell some stake de­pend­ing on the val­u­a­tion. “If the ex­ist­ing in­vestors sell part of their stake, the in­com­ing in­vestor could end up get­ting a sig­nif­i­cant mi­nor­ity stake in the com­pany,” said a per­son fa­mil­iar with the de­vel­op­ment.

Last year, the com­pany ap­pointed in­vest­ment bank Credit Suisse to look for in­vestors.

A spokesper­son for In­de­gene said its founders were trav­el­ing over­seas and are not in a po­si­tion to re­spond to emailed queries from ET. Spokesper­sons for Apax, Kedaara and TA did not re­spond to emailed queries as of press time on Fri­day.

Founded in 1998, In­de­gene helps the US-based life sciences com­pa­nies through its an­a­lyt­ics, tech­nol­ogy, op­er­a­tions and med­i­cal ex­per­tise (ATOM). Its CEO Man­ish Gupta, an IIT-BHU and IIM Ahmed­abad alum­nus who worked in In­fosys till 1998, is one of the co­founders.

The com­pany that started off to cater to just the do­mes­tic mar­ket branched out in 2004 when it changed its strat­egy to fo­cus on the over­seas mar­ket. To­day, it has around1,400 em­ploy­ees and of­fices in Mon­treal, Los An­ge­les, At­lanta, Shang­hai, Zurich and Ben­galuru, af­ter a se­ries of ac­qui­si­tions.

In 2002, KITVEN Fund in­vested in In­de­gene. In 2005, In­fosys co­founder Ragha­van’s Na­dathur Hold­ings bought out KITVEN Fund’s stake in the com­pany.

Last year in De­cem­ber, the com­pany ac­quired US-based Enicma Group for $16 mil­lion (.`109.54 crore) to ramp up its an­a­lyt­ics and omni-chan­nel dig­i­tal so­lu­tions ca­pa­bil­ity for the pharma in­dus­try. It also bought Canada's Skura Tech­nolo­gies for $9 mil­lion (about .₹ 60 crore) to ex­pand its tech­nol­ogy of­fer­ings to life sciences and pharma com­pa­nies. In De­cem­ber 2015, the com­pany ac­quired SmartCare, a health an­a­lyt­ics plat­form, from Con­necti­cut-based Van­tage Point for $6-8 mil­lion. Be­fore that, in Jan­uary 2014, it ac­quired At­lanta-based qual­ity im­prove­ment, out­come re­search and clin­i­cal en­gage­ment ser­vices com­pany To­tal Ther­a­peu­tic Man­age­ment (TTM), Inc. In 2012, it ac­quired Canada-based mul­ti­chan­nel and physi­cian mar­ket­ing com­pany Ap­til­lon Hold­ings Inc for $4 mil­lion.

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