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
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.