Global travel, transportation and logistics technology firm IBS Software on Wednesday said it will receive $170 million (about Rs 1,136 crore) of funding from private equity major Blackstone in lieu of an undisclosed minority shareholding. Blackstone is buying out the stake that PE firm General Atlantic has held in IBS since 2007, as well as that of other shareholders. The transaction is expected to close within a month, subject to customary regulatory approvals.
IBS has a global presence with nearly 3,000 professionals across nine offices and provides a range of new-generation software products to some of the world’s best airlines, busiest airports, leading cruise lines, major travel distributors and top oil and gas companies.
“Investment by a global tier-1 PE player is an endorsement of the relevance and significance of what we do and our financial strength, and also a validation of our industry vision, the business model that we operate and standards of corporate governance,” said VK Mathews, founder and executive chairman of IBS Group, in a statement.
Blackstone established its office in India in August 2005, and has since committed $5.1 billion to companies here.
“IBS is a rare Software as a Service (SaaS) company with intellectual property in the aviation, travel and hospitality verticals across the globe. We are impressed by the company’s management team and its track record of delivering mission critical solutions to marquee global customers,” said Amit Dixit, senior managing director and co-head of private equity in India at Blackstone.