Apax Partners to Acquire Blackstone’s Stake in IBS Software for $450 Million

• ByStartupStory     |    May 15, 2023

Global private equity firm Apax Partners has announced its acquisition of Blackstone’s stake in IBS Software, a leading software solution provider for the travel and logistics industries. The deal, valued at approximately $450 million, marks Apax’s strategic entry into the thriving travel technology sector.

Blackstone, also a private equity firm, initially acquired a significant minority stake in IBS Software in 2015 for around $170 million from General Atlantic. Apax’s investment will see Blackstone exiting its position, while founder and executive chairman of IBS Software, V K Mathews, will retain the majority ownership.

As a privately-held company founded in 1997, IBS Software has established itself as a key player in delivering software solutions across various sectors, including cargo and logistics, flight operations, passenger services, loyalty programs, cruise operations, energy and resource logistics, and hospitality distribution platforms. With a global workforce of 4,000 employees, the Thiruvananthapuram-headquartered company has demonstrated its commitment to innovation and industry-leading products.

V K Mathews expressed his satisfaction with the partnership, stating, “This investment is an endorsement of our strategy and our commitment and contribution to the industry, and we have a shared vision with Apax for the future of the business.” The founder’s continued involvement signals a strong alignment between IBS Software and Apax’s growth objectives.

According to Tracxn data, IBS Software reported a revenue of $167 million for the financial year ending March 31, 2022. Over the years, the company has successfully secured a cumulative funding of $230 million, primarily from prominent private equity players. Jason Wright, Partner at Apax, highlighted the growth potential in the travel and logistics software market, stating, “We believe there is tremendous growth potential ahead and look forward to leveraging our software experience to help IBS Software become a world leader in travel and logistics software.”

This transaction not only emphasizes the interest of private equity players in Indian software companies but also positions IBS Software for potential future expansion. There have been reports suggesting the company’s consideration of a public listing in the US markets, which could further fuel its growth trajectory.

As Apax Partners takes the reins of IBS Software, the industry eagerly anticipates the combined expertise and resources that will propel the company toward becoming a global leader in travel and logistics software solutions.

Follow Startup Story