Apax VIII announces the sale of its remaining stake in GlobalLogic
The Apax VIII Fund (“Apax VIII”) has today announced that it has entered into a definitive agreement to sell its remaining ownership interest in GlobalLogic, a leader in digital product engineering services, to Partners Group.
Headquartered in San Jose, California, USA, GlobalLogic employs 12,000 people and operates design studios and engineering centers around the world. Apax VIII acquired GlobalLogic in 2013 having recognised the significant long-term growth outlook for the outsourced product development industry and that GlobalLogic was well-positioned to capitalise on this due to its best-in-class global delivery capabilities, well-established client base and experienced management team. The business has performed strongly since Apax’s VIII’s investment with both revenue and EBITDA more than doubling in the period.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In 2012, AGA’s predecessor vehicle made a commitment of c.€342m to Apax VIII.
Partners Group to Acquire Ownership Stake in GlobalLogic Inc. from Apax Funds
Transaction values GlobalLogic at over $2bn, bringing another strategic global investor on board for next phase of growth
San Jose, London, and Baar-Zug – May 21, 2018 – GlobalLogic Inc., Apax Partners, and Partners Group today announced that Funds advised by Apax Partners, the global private equity advisory firm, have agreed to sell their ownership stake in GlobalLogic Inc. to Partners Group, the global private markets investment manager, which is acting on behalf of its clients in the acquisition. The transaction values GlobalLogic, a leader in digital product engineering services, at over two billion dollars. Following the acquisition, Partners Group becomes an equal shareholder with existing investor Canada Pension Plan Investment Board (CPPIB).
With over $500M in revenue, and 20%+ organic growth rate, GlobalLogic has more than doubled in revenue and EBITDA since the Apax Funds first invested in the company in 2013. The company has been an innovator in the digital product engineering services space, with 12,000 employees worldwide working at design studios and engineering centers across the globe. GlobalLogic helps clients build innovative digital products that enhance customer engagement, and create new revenue streams. Its clients represent well-known global brands across multiple industry verticals.
Demand for digital product engineering services has grown rapidly, and GlobalLogic has been instrumental in helping organizations navigate the digital transformation arena. Next-generation cloud platforms, mobile and web applications, the Internet of Things (IoT), and other digital experiences have amplified the urgent need for brands to stay inventive and be able to offer customers a personalized and coherent service experience. GlobalLogic helps its customers build these innovative products and accelerates their journey in becoming the digital businesses of tomorrow. With Partners Group on board, the company can leverage the firm’s relationships, as it looks to continue to grow the business, especially in Europe.
“Partners Group has a long and successful track record of working with high growth companies and we are very pleased to have an investor that understands our business and shares our vision of building an even stronger company,” said Shashank Samant, CEO, GlobalLogic. “We are thankful to Apax Partners for their strong partnership and strategic support for the past four and a half years, and we look forward to our next chapter of growth as we expand into new markets and geographies with our new investment partner.”
“GlobalLogic is a market out-performer with strong momentum and a talented management team,” said Todd Miller, Managing Director, Private Equity Americas, at Partners Group in Denver. “Digital transformation throughout the economy is driving demand for next-generation project engineering services, a long-term trend we expect to continue for many years. GlobalLogic’s world-class network of software engineers assist clients to deploy cutting-edge software products that propel their businesses forward. We are excited to work with CPPIB as well as Shashank and his team to further strengthen the company’s competitive position and prospects for sustainable, long-term growth and enduring profitability.
Rohan Haldea, Partner at Apax Partners, said: “We would like to thank Shashank and his team for all they have achieved over the past four and a half years. By investing in both their people and technical capabilities, GlobalLogic has cemented its position as a global leader in digital product engineering services. By delivering excellent customer outcomes the business has seen impressive growth. We wish the team all the best for the future.”
“We have benefited from a collaborative partnership with Apax over the past year and we are grateful for their contributions to GlobalLogic’s unique digital innovation growth story. CPPIB plans to continue to invest in GlobalLogic through its journey as the partner of choice to Fortune 500 companies for digital transformation and core software product development,” said Ryan Selwood, Managing Director, Head of Direct Private Equity, CPPIB. “We look forward to working alongside another world-class investor in Partners Group to support Shashank’s vision for the next stage of GlobalLogic’s rapid evolution.”
In April 2017, the Apax Funds sold 48% of its equity stake in GlobalLogic to CPPIB.
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About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value (NAV).
The investment policy of the Company is to make private equity investments in Apax Funds and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors.
Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm and over its more than 35-year history, Apax Partners has raised and advised funds with aggregate commitments of over €42billion as at 31 March 2018. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.