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Apax Partners buys stake in Persistent Systems for Rs 57.84 crore

The Economic Times:  May, 2014

Mumbai: Private equity major Apax Partners has bought a 1.5% stake in software products and services provider Persistent Systems in a public market transaction.

The deal valued at Rs 57.84 crore signals increased interest in the Indian technology services industry by the investment firm. The latest transaction was routed through PCV LUX SCA, a foreign institutional investor sub account registered with Apax according to market regulator, Sebi The shares were bought for Rs 963965 on the Bombay Stock Exchange, BSE and the National Stock Exchange NSE on Friday last. Apax Partners India head Shashank Singh did not reply to an email query on the development.

Persistent reported 3.2% quarter on quarter increase in revenues to Rs 446.7 crore for the last quarter of 'fiscal 2014, while net profits rose 4.7% increase to Rs 67.2 crore during the same period.

The investment comes after it picked up 1.67% stake in another technology services firm, KPIT Technologies, for Rs 55.4 crore three weeks ago.

Both Pune-based companies have also attracted other private equity investors over the last couple of years. KPIT Technologies is backed by ChrysCapital and CX Partners, while Persistent counts SAIF Partners as a shareholder besides having Norwest Venture Partners as one its venture investors.

In 2011, Apax had committed to invest $480 million in iGate Corporation to fund the $1.2 billion buyout of software services firm Patni Computer. More recently in November 2013 it acquired GlobalLogic, a software R&D services provider, in a leveraged buyout pegged at $420 million.