Blackstone has reached a definitive agreement to sell its stake in Indian SaaS startup IBS Software to Apax for $450 million, the three said Monday, the latest in a series of late-stage deal activity among IPO-ready companies.
IBS Software offers a range of software solutions for airlines, logistics and hospitality companies. The Kerala-based startup has a global presence with offices in the US, Canada, Australia, Dubai, Japan, South Korea and the UK. It counts Cathay Pacific Airways and Etihad Airways, Air Canada, DHL, FedEx, Heathrow, JetBlue, Lufthansa, Qantas, Singapore Airlines and Virgin Atlantic among its customers, according to its website.
Blackstone acquired an approximately 40% stake in IBS Software from General Atlantic in 2015 for $170 million. According to previous local media reports, Blackstone is reportedly looking to sell this stake for more than $1.2 billion. IBS Software has raised $680 million in primary and secondary transactions to date, according to market research firm Tracxn.
“We are excited to partner with Apax as we enter a new phase in our mission to transform the way travel companies operate in a digital world. This investment is a confirmation of our strategy and our commitment and contribution to the industry, and we have a shared vision with Apax for the future of the company,” said VK Mathews, Founder and Executive Chairman of IBS Software, in a statement.
The 25-year-old company IBS Software, which generated revenues of about $150 million in fiscal year 2022, was considering an IPO in the US last year. The company, which had confidentially filed for an IPO, postponed plans amid a global economic slowdown.
“Having closely monitored the travel software industry over the past few years, IBS Software stood out to us as being uniquely positioned in the industry, with a next-gen software package that we believe is truly unparalleled. Over the past two decades, IBS Software has invested in products, innovation and culture as the company has continued to grow,” said Jason Wright, Partner at Apax, in a statement.