TPG Capital has acquired a majority stake in Altimetrik, a US-based pure-play digital business firm for an undisclosed sum, the company announced on Thursday. Altimetrik is owned by Indian American entrepreneur Raj Vattikuti.
TPG, according to people in the know, has acquired about 60% stake at a valuation of $1.5 billion (₹12,500 crore).
ET reported on June 19 that TPG Capital has emerged the lead contender for about 60% of Michigan-based digital services company Altimetrik. TPG’s Asia investment platform – TPG Capital Asia has signed an exclusivity agreement with the promoters, ET reported. It is the debut buyout of TPG Capital in Indian ITeS space.
Altimetrik, which has over 80% workforce based in India, spans twenty-two global locations. In India, Altimetrik has offices in Pune, Chennai, Bengaluru, Hyderabad, Jaipur and Gurgaon. It has a global client base across financial services, banking, payments, pharma, retail/CPG, and manufacturing sectors.
The company will continue to be led by CEO Raj Sundaresan with support from a leadership team including Founder and Executive Chairman Raj Vattikuti and President of Digital Business and AI Adam Caplan.
A clutch of global PE funds – US based General Atlantic, TPG Capital, Warburg Pincus and Canadian fund OTPP – were in the final race to acquire a majority stake in Altimetrik.
TPG’s investment, made through its TPG Asia private equity platform, will enhance Altimetrik’s brand and support its goal of reaching $1 billion in annual revenue within the next three years, said the company statement.
Altimetrik has established its digital business methodology (DBM) as a tool for businesses that seek solutions to platform modernisation, cloud, data, and AI that provide revenue growth and cost reduction. Its customers are served by over 6,000 employees in offices and development centers around the world.
“TPG has a long track record of investing in successful enterprise tech companies and their extensive capabilities that can enhance our expansion strategy as we build on the strength and visibility of our brand. With this partnership, we can focus on leading the digital business landscape and expand our reach worldwide,” said Sundaresan .
“Altimetrik’s unique value proposition, combining a proven methodology with strong engineering capabilities and talent development initiatives, aligns perfectly with our investment strategy and portfolio,” said Puneet Bhatia, Co-Managing Partner and Country Head, India of TPG Capital Asia.
Source: Economic Times