Partners Group acquires majority stake in CSS Corp for $270M

Wed Jun 26, 2013 11:17am IST

Related Topics

Partners Group, the Switzerland-based private market investment manager with $33 billion under management, has acquired a majority stake in CSS Corp, a remote infrastructure management and technology support services company. The stake has been purchased for $270 million in a management buyout deal which will give SAIF Partners, Goldman Sachs and Sierra Ventures an exit.

The deal also involves Sanjay Chakrabarty, a technology entrepreneur, picking up a minority stake in CSS.

Partners Group's $270 million investment is also one of the largest investments in India's information technology sector after Bain Capital's $1 billion deal with Genpact and KKR acquisition of Aricent for $900 million.

CSS has raised multiple rounds of private equity funding. SAIF Partners had invested $22.5 million in CSS in 2006, picking up the stake from Baring Private Equity India besides a primary investment into the company directly. Then in 2007, CSS raised a $25 million round led by Goldman Sachs. Venture capital firm Sierra Ventures also held a stake in CSS.

At the time it raised funding from Goldman, CSS bought all its group firms under one roof. These were Slashsupport, Synaptris and Ready Test Go.

Ravi Adusumalli, India head at SAIF Partners, confirmed that the deal would mean an exit for his firm. "Tiger Ramesh did a fantastic job of turning around the company and enabling a successful exit for shareholders. This coupled with our recent IPO for Just Dial made it possible for us to distribute over $200 million in proceeds to our investors," he told VCCircle.

CSS provides a range of services, including mobility solutions, cloud enablement, technical support and remote infrastructure management to a blue-chip client base that includes some of the largest global technology companies. The company serves a client base in the US and Europe and has a large delivery presence in India, the US, the Philippines, Poland, Mauritius, Costa Rica and China.

CSS has service delivery centres in 13 locations worldwide and a team of over 5,400 professionals.

"CSS CEO ‘Tiger' TG Ramesh has built around him a hand-picked team of executives from multi-billion dollar IT firms to drive a global expansion strategy. Partners Group will partner the company in this next phase of growth, in which the emphasis will be on the build-out of sales and the further expansion of the firm's service footprint by adding delivery centres in new geographies," said a Partners Group statement.

The deal comes after Partners Group roped in Cyrus Driver to strengthen direct investment activities in India last year. Driver, who joined as a managing director based out of Singapore, earlier headed Helix Investments after which he joined Arka Capital.

(Edited by Joby Puthuparampil Johnson)

-- Copyright 2013 VCCircle.com. All rights reserved. This content/article is provided by Mosaic Media Ventures Private Limited and not by Reuters. All rights, including copyright, in this content/article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. The content may not be copied, broadcast, downloaded and stored (in any medium), transmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Market at Record

Market at Record

Sensex, Nifty hit record highs; reforms outpace hawkish Fed.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Samsung Results

Samsung Results

Smartphone woes drag Samsung Elec Q3 profit to more than 3-year low.  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage