Blackstone Inc. is in talks with multiple private equity funds to sell a significant minority stake in IBS Software after its plans for a foreign listing failed to materialize, two people familiar with the development said.
The private equity giant has hired investment bank JP Morgan to sell at least 40% of its total 44% stake in the travel and hospitality software provider for about $1 billion, the people cited above said on condition of anonymity, adding the process is still in the early stages.
Spokespeople for JP Morgan and Blackstone declined to comment. Representatives for IBS Software did not respond to a request for comment till press time.
Blackstone acquired a minority stake in IBS Software for approximately $170 million in 2015 from General Atlantic and other shareholders.
The founders are not interested in selling their stake, the people cited above added.
IBS Software provides solutions to airlines, hospitality and logistics businesses.
The company had made a confidential filing for a US listing in 2022, seeking a valuation of $2 billion.
It was looking to raise around $500 million at the time, Bloomberg had reported in June 2022. Since then, software valuations have tempered globally.
Founded in 1999 by V.K. Mathews, IBS Software reported global revenues of $145 million in fiscal 2019. Its latest global revenues could not be ascertained.
It also has a presence in the US, Canada, Japan, Australia, and Dubai, according to its website.
Blackstone has made several other investments across software technology services over the years.
It has a majority stake in Mphasis Ltd, which provides cloud and digital solutions to companies in banking, insurance and financial services sectors.
In November 2022, Blackstone acquired information technology services company R Systems International, which provides digital product engineering services, for $359 million.
Blackstone has over $649 billion in assets under management and includes investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, and real assets, according to its website.
In India, Blackstone also owns Essel Propack, Aadhar Housing Finance, edtech business Simplilearn, and PGP Glass (erstwhile Piramal Glass).
Separately, Blackstone is also in talks to exit a part of its stake in Embassy REIT, Reuters reported last month
