Advent International takes majority stake in Encora for $ 1.5 billion


Private equity (PE) firm Advent International has acquired a controlling stake in Encora, a global digital engineering services company with innovation labs in India and the United States, for $ 1.5 billion. As part of the deal, Warburg Pincus, Encora’s current majority shareholder, sold its stake and now retains a minority stake.

“We are delighted to enter into this partnership with Advent as we continue to develop our differentiated software engineering service offerings,” said Venu Raghavan, CEO of Encora.

He added, “Advent’s deep expertise in the business and technology services industry, along with its global footprint, complements Encora’s strengths and creates opportunities to grow our business in key markets around the world. “

Encora is an established leader in outsourced software product development services, utilizing deep technical expertise in machine learning, artificial intelligence (AI), data science, cloud services and other engineering disciplines. next-generation digital technology to accelerate strategic innovation for technology companies.

The deal signifies a portion of merger and acquisition (M&A) activity and demand for companies in the product engineering services industry. Earlier this year, Hitachi acquired GlobalLogic in a $ 9.6 billion deal, one of the largest in engineering and research and development (R&D).

The space of engineering and R&D has, in recent times, become an important axis for major players, because engineering is a key element in the history of digital transformation. For the digital segment, this is the engineering of digital products or software, which is the backbone of any digital plumbing and software platform development.

For the physical segment, Industry 4.0 is driving transformation in manufacturing and asset-intensive industries. Not having a presence in these sectors means an inability to provide a comprehensive solution and to open up your key customers to other competitors.

Since renaming itself Encora in 2020, the company has focused more on the consumer tech and enterprise tech sectors. It has expanded its global talent pool to more than 6,300 associates in 40 global offices in Latin America, India, Asia-Pacific and the United States.

“We have experienced tremendous growth in the digital technology services industry over the past few years. Indeed, powerful technology products have mushroomed across industries, ”said Shweta Jalan, Managing Director (MD) of Advent.

Jan Janshen, Managing Partner at Advent, said: “We believe Encora is well positioned to capitalize on the growing digital services market. We are delighted to partner with Venu, the talented management team of Encora and Warburg Pincus to support the company’s growth in key markets in North America, Europe, India and Asia Pacific, where Advent is very present.

This new partnership allows Encora to accelerate its global growth, both organically and through targeted mergers and acquisitions opportunities. It also helps it expand its differentiated delivery model and advance its customer-centric digital services.

Encora continues to focus on the software and digital engineering needs of Software as a Service (SaaS) companies, midsize technology companies and large enterprises. Advent, with $ 81 billion in assets as of June 30, 2021, has invested in more than 380 companies in 42 countries in North America, Europe, Latin America and Asia.

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