Private equity firm Warburg Pincus has acquired a stake in IT services firm Everise Holdings at a valuation of $1 billion, the companies said in a statement. While Everise’s majority owner Brookfield Asset Management will retain some of its stake, co-owner Everstone will exit as part of the transaction.
Brookfield had previously decided to sell a majority stake in Everise, but Tuesday’s statement did not specify whether Warburg indeed acquired a majority stake.
In 2016, Everstone, along with Sunrise BPO, acquired US-based business process outsourcing company C3 to create Everise. Everstone sold a majority stake in the business to Brookfield for approximately $450 million in 2020. Simultaneously, it bought a 20% stake in Everise through a different fund.
Tuesday’s transaction is subject to customary regulatory approvals and is expected to close by the end of 2023.
Mint first wrote about Brookfield’s intent to sell its stake in the company in May 2023.
“Warburg Pincus has been an active investor in the global outsourced technology-enabled services space, and Everise presents an attractive platform to offer such services to the global healthcare payer and provider ecosystem. We have continued to see strong underlying demand for quality customer experience, driven by an increasing outsourcing trend across the global healthcare industry,” Viraj Sawhney, managing director, Warburg Pincus, said.
“With our deep network and resources across Asia and the US, we are well-positioned to help Everise gain further momentum as a leader in the industry,” Saurabh Agarwal, managing director, Warburg Pincus added.
This is the third IT services transaction in recent months after Apax Partners acquired Blackstone Inc’s stake in IBS Software for $450 million, and Carlyle acquired a significant minority stake in Quest Global Solutions.
“Since our investment in Everise in 2020, the company has delivered strong organic growth following investments in technology and operations and has become a strategic partner for its customers around the world. We look forward to partnering with Warburg Pincus and the Company’s management team for the next stage of the journey,” said Aditya Joshi, managing partner at Brookfield. Brookfield did not quantify its balance stake in the business.
Everise was founded in 2016 and provides services in healthcare services outsourcing space. It has over 19,000 employees in eight markets.