Everstone signs first-ever IT deal

The India-focused firm will pay $66m for a majority stake in software firm Servion

Everstone Capital Partners has agreed to buy a controlling stake in Indian technology company Servion Global Solutions in a deal worth INR 4 billion ($66 million; €52 million), according to a statement.

The firm has partnered with Solmark, a Silicon Valley-headquartered entrepreneurs’ equity fund, for the investment, which is the private equity firm’s first in India’s IT and IT services sector.

Everstone is the lead investor on the transaction, with most of the capital coming from Evertech Pte, an investment vehicle set up using funds from Everstone Capital Partners II.

The transaction, which was advised by Avendus Capital, will also provide an exit to existing investors The Anchor Group and Basil Partners.

Servion, which was founded in 1999, produces software that improves customer interactions be it through phone, email, internet or social media. The company employs over 800 people and counts businesses in the banking and finance, telecommunications, business process outsourcing, transportation, retail and hospitality sectors among its customers.

“Servion’s cutting edge solutions and outstanding management team offer a unique and strong investment opportunity. Combining efforts with our long standing friends and partners at Solmark will enable us to propel the company’s growth to the next level,” Prateek Dhawan, managing director at Everstone, said in a statement. Dhawan will join the company board.

The deal comes as Everstone enters the market with its third private equity vehicle targeting $650 million, with a hard cap of $700 million, Private Equity International reported earlier.

The firm has declined to comment on fundraising, but Sameer Sain, co-founder of the firm, said at PEI’s India Summit 2014 in October that it expects control transactions to ultimately represent two-thirds of its current vehicle.

“Buyouts are beginning to happen in this country. You are beginning to see that you can actually go and buy businesses, I see it on a daily basis,” he told delegates.