About half a dozen suitors, including PAG and Apax Partners, have expressed strong interest in acquiring Accion Labs, a US-based digital-focused software product engineering company, according to people familiar with the development.
These firms have reportedly submitted non-binding bids to acquire a majority stake in Accion Labs, valuing the company between $800 million and $1 billion.
Currently, global private equity fund TA Associates and Mumbai-based PE fund True North Partners together hold approximately 90% ownership in Accion Labs, with the remaining stake retained by the company’s founders.
JP Morgan is advising the investors on a potential exit strategy.
Founded in 2011 in Pittsburgh, Accion Labs employs more than 5,500 engineers across 23 offices in the US, Canada, the UK and the Asia-Pacific region. Bloomberg reported last year that TA Associates was planning to exit its investment in the company.
In India, Accion has offices in Bengaluru, Mumbai, Pune, Hyderabad and Goa.
In 2022, True North Partners, through its fund Indium VI (Mauritius) Holdings, acquired about 30% stake in Accion Labs for $93 million, while TA Associates acquired the majority stake in 2020.
Accion Labs, co-founded by Kinesh Doshi and Tony Kernan, offers a wide range of services including digital engineering, cloud and platform engineering, data and artificial intelligence (AI) solutions, enterprise system automation and agentic AI solutions, according to its website.
Queries sent to TA Associates, True North Partners, Accion Labs and Apax Partners did not elicit any responses, while a PAG spokesperson declined to comment. Private equity funds are increasingly targeting tech services firms, driven by the sector’s high growth potential fuelled by the ongoing digital transformation, along with growing demand for IT consulting, cloud and cybersecurity services.
The tech services market remains highly fragmented, presenting opportunities to PE investors to create value through consolidation, operational improvements and strategic expansion.
Recently, TPG Capital-owned Altimetrik acquired SLK Software, a Bengaluru-based technology services firm specialising in AI, intelligent automation and analytics solutions.
The acquisition, valued at $550-$600 million (about ₹5,100 crore), saw Altimetrik outbid other IT companies including Mphasis and Hexaware Technologies. In India, unlike the west, the robust exit environment, supported by interest from both strategic buyers and public markets, makes tech services companies attractive acquisition targets for private equity firms, according to experts.
Carlyle-backed Hexaware Technologies went public in February 2025, listing at a premium of 5.3%. CA Magnum Holdings, an affiliate of The Carlyle Group, currently holds a 74.57% stake in Hexaware. The Carlyle Group acquired the majority stake from Baring Private Equity Asia in 2021 for about $3 billion. Hexaware’s market capitalisation stands at ₹49,239 crore ($5.64 billion). The Indian software products market is poised for significant expansion, with projections estimating growth to $44 billion by FY31 from $15 billion in FY23.
According to a report by Avendus Capital, an increasing number of scaled players, in high-growth sub-segments such as cloud services, analytics and AI services, and cybersecurity services, are expected to emerge and capitalise on value creation opportunities.
