In a recent development, funds advised by Apax Partners have announced that they will invest approximately $450 million to acquire a significant minority stake in IBS Software. The latter is a leading provider of modern Software-as-a-Service (SaaS) solutions to the global travel and logistics industry. The deal involves the acquisition of IBS Software from Blackstone, a multinational private equity, alternative asset management, and financial services firm.
IBS Software: A Brief Overview
Founded in 1997, IBS Software provides next-generation SaaS solutions to the world’s leading aviation, tour and cruise, hospitality, and logistics companies. With a team of over 4,000 professionals worldwide and 25 years of deep domain expertise, IBS Software’s comprehensive portfolio of modular, cloud-based solutions helps travel companies accelerate innovation and drive efficiency across a broad set of core business processes. These include cargo and logistics, flight operations, passenger services, loyalty programs, cruise operations, energy & resource logistics, and hospitality distribution platforms.
Apax Partners and IBS Software: A Shared Vision for the Future
Following the transaction, Apax Partners will partner closely with IBS Software’s Founder and Executive Chairman, V K Mathews, who will remain the majority shareholder. In a statement, V K Mathews said, “We’re excited to partner with Apax as we enter a new phase in our mission to transform how travel companies operate in a digital world. This investment is an endorsement of our strategy and our commitment and contribution to the industry, and we have a shared vision with Apax for the future of the business.”
Anand Krishnan, CEO, IBS Software, also added, “As the travel industry rapidly embraces digitalisation, we have a vital role to play in helping our customers accelerate revenues, drive efficiency and create differentiated customer experiences. Apax has deep experience in partnering with leading SaaS providers and will be a strategic partner for IBS Software as we embark on a new phase of growth.”
Apax Partners: A Strategic Partner for IBS Software
Jason Wright, Partner at Apax, said, “We are thrilled to partner with VK and the management team at IBS Software. Having closely monitored the travel software sector over the last several years, IBS Software stood out to us as uniquely positioned in the industry, offering a next-gen software suite that we believe is truly unrivalled. Over the last two decades, IBS Software has invested in products, innovation, and culture, while continuing to scale the business. We believe there is tremendous growth potential ahead and look forward to leveraging our software experience to help IBS Software become a world leader in travel and logistics software.”
Blackstone: A Partner in IBS Software’s Transformation Journey
The transaction is subject to customary closing conditions and is expected to close at the end of Q2 2023. Financial terms were not disclosed. Amit Dixit, Head of Asia Private Equity at Blackstone, said, “We are happy to have played an important role in IBS Software’s transformation to a SaaS company with global leadership in Travel and Logistics. IBS is already one of the largest enterprise SaaS companies out of India. We thank VK for his strategic vision and for being a terrific partner, and Anand and the management team for their impeccable execution. Value creation at IBS Software demonstrates our business-building approach to investing and reinforces our conviction in Technology as a sectoral theme.”
Conclusion
With this new investment, Apax Partners is looking to consolidate its position in the travel software industry and help IBS Software become a global leader in travel and logistics software. As the travel industry continues to rapidly embrace digitalization, companies like IBS Software will play an essential role in helping their customers accelerate revenues, drive efficiency, and create differentiated customer experiences.
Overall, the investment is a significant milestone for IBS Software, which has already established itself as one of the largest enterprise SaaS companies out of India. With Apax Partners’ support, the company is poised to continue its growth trajectory and redefine the future of mission-critical technology for the travel industry. The transaction is subject to customary closing conditions and is expected to close at the end of Q2 2023. Financial terms of the deal were not disclosed.
As the travel industry looks to recover from the pandemic, technology will undoubtedly play a crucial role in shaping the industry’s future. The partnership between Apax Partners and IBS Software highlights the importance of innovation and technology in the travel industry, and it will be interesting to see how this investment helps IBS Software redefine the industry’s future.
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