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Mumbai: Personal fairness buyers TA Associates and True North wish to exit their stakes in Pittsburgh, US-based digital engineering agency Accion Labs Holdings Inc. The 2 buyers have kicked off deliberations for a possible billion-dollar valuation for the corporate, in response to 4 individuals acquainted with the matter. The sale course of is being led by JP Morgan and Avendus, these individuals stated on situation of anonymity.
“The preliminary diligence course of is predicted to start out within the coming weeks and about 20 NDAs (non-disclosure agreements) have been signed,” one of many individuals cited above stated.
A second individual stated that the deal is in its preliminary phases and the data memorandums–the official launch of a deal the place particulars are shared with potential patrons–have been despatched out just lately. “The events will start partaking in early August after which the due diligence course of will begin,” this individual added.
JP Morgan and Avendus declined to remark. Accion Labs, True North and TA Associates didn’t instantly reply to Mint’s requests for remark.
The event marks a major milestone for the fast-growing tech companies firm based by entrepreneur Kinesh Doshi, because it attracts curiosity from world patrons amid sustained demand for next-gen digital engineering capabilities even in a possible recessionary interval.
In line with a report final yr from administration and technique consulting agency Zinnov, the worldwide market dimension for digital engineering services stood at $1.03 trillion as of October 2024 and is predicted to develop at a compounded annual development price of 13% over the following three years.
In March 2020, Boston-headquartered TA Associates had leveraged its India pool of capital to choose up a stake in Accion Labs, together with Basil Expertise Companions, a Singapore-based specialist know-how investor.
Two years later, homegrown personal fairness fund True North, together with some co-investors, picked up a major minority stake value $93 million from TA Associates and different shareholders via its Indium VI fund. On the time of the funding, True North highlighted that it goals to speculate as much as 30% of funds that it manages or advises in tech and digital companies.
To make certain, TA Associates continues to be the bulk shareholder within the firm.
Based in 2011, Accion Labs focuses on offering digital transformation consulting and companies to world enterprises and know-how companies. Its consumer base consists of software program product companies, e-SaaS companies, e-commerce organizations and e-business organizations.
Its choices vary from digital consulting and information to machine studying engineering and automation. The corporate has greater than 4,800 staff globally, unfold over 20 areas throughout the US, Canada, the UK and Asia-Pacific.
Accion Labs additionally has a major presence in India via strategic partnerships and improvement centres that contribute to its world revenues.
It has strategic partnerships with Pune, India-based e-Zest Options, a digital improvements firm, and Micro Focuswhich has a major India presence.
Inside the APAC area, Accion Labs has improvement centres and workplaces in Dubai, Mumbai, Pune, Hyderabad, Bangalore, Goa, Singapore, Kuala Lumpur, Manila and Bangkok.
A few of its prime rivals embrace UST, Happiest Minds and Endava, as per information from market intelligence supplier Tracxn.
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