Goldman Sachs Merchant Banking Division and private equity firm Everstone Group have signed a definitive agreement to acquire a significant stake in digital engineering services company Infostretch, the company said in a statement on Tuesday.
The investment will help accelerate the company’s business growth and expand its digital engineering service offerings for both enterprise and digital native companies. Financial terms of the announcement were not disclosed.
The company works across the entire software development lifecycle, from strategy through execution and operations, helping companies overcome technical obstacles in their digital initiatives. Infostretch has a team of over 1,200 global engineers across US and India.
“The expertise and reputation we have built over the last fifteen years has put us in the position to advance the digital initiatives of some of the world’s leading companies and brands. This investment will enable us to build on those strengths and take advantage of the growing need for more innovative digital solutions in verticals like healthcare, financial services and technology,” said Rutesh Shah, CEO and co-founder of Infostretch.
Demand for digital product engineering services has been on the rise. According to research firm IDC, global spending on digital transformation technologies and services is forecasted to grow 10.4% in 2020 to $1.3 trillion.
“Digital will be the core differentiator for businesses of all sizes in almost every segment over the next five to ten years,” said Avnish Mehra, senior managing director at Everstone Group.
“With its expertise in emerging technologies and the ability to incorporate intelligent automation across the development lifecycle, we think Infostretch is well positioned to be one of the premier digital engineering service providers in the market.”
Infostretch will look to leverage Goldman and Everstone’s relationships, capabilities of their domain specific operating partners and their M&A experience, as it looks to grow its business and expand globally. Infostrech plans to be active in pursuing inorganic opportunities to strengthen its capabilities in the digital stack.
“Infostretch has built an impressive brand and list of loyal clients in healthcare, financial services and high tech. Their global presence and ability to apply the latest capabilities in areas like AI and analytics with best practices in Agile and DevOps set them apart in the digital engineering space,” said Harsh Nanda, a managing director in the Goldman Sachs Merchant Banking Division.