Private equity firm EQT-backed Indium Software Wednesday announced acquisition of a majority stake in product engineering services firm Experion. While the financial details of the acquisition were not disclosed, a spokesperson of the company said the deal is expected to be completed in the next three years or more.
VCCircle had earlier this month reported that Indium Software is set to acquire an IT company to help expand into newer regions and services.
The digital engineering firm, which has offices in India and the US, will establish a foothold in newer regions such as the UK, Europe, Australia, and Japan through this deal. In India, Indium will expand to Kochi and Thiruvananthapuram where Experion has offices, it said.
The Experion deal will also help Indium expand its existing portfolio of BFSI, retail, and healthcare to include manufacturing, automotive, and transportation clients. The company plans to retain top leadership; additionally, the workforce will grow from 3,400 to 5,000.
“We have set a revenue target of $150 million for the next financial year. Experion will add about 30% to this figure,” Ram Sukumar, CEO and co-founder of Indium, told TechCircle.
Indium Software’s had consolidated revenue of Rs 466.8 crore ($55.5 million) and profit after tax of Rs 58 crore in the year ended March 2024. Experion had consolidated revenue of Rs 191.5 crore and a profit of Rs 15.7 crore in the financial year ended March 2023, according to the latest data on VCCEdge.
“We (Indium) have had a good CAGR of about 40%-45% over the last five years. The two good growth companies coming together will offer a compelling platform for our customers and employees,” Sukumar added.
Hong Kong-headquartered BPEA EQT Mid-Market Growth Fund acquired a majority stake in Indium in 2023.
“The equity backing has been excellent, and as we approach 10 months into this journey, it's been a collaborative and busy time. We've been particularly active on the M&A front, evaluating several assets before moving forward with key deals like Experion. We are focused on M&A, expanding revenue through new client acquisitions, growing our existing customer base, and strengthening our leadership team,” said Sukumar.
Currently, Indium is deliberating on similar M&A deals in the product and platform capabilities and data space.
“The benefits of some of these investments will translate into accelerated growth and revenue and profits in the next two to three years. It has been a good year and we grew reasonably well despite softer market conditions,” said Sukumar.