Warburg Pincus has outbid rival Bain Capital to acquire a stake in engineering software designer QuEST Global for $60 million, according to the Economic Times.
The firm won a bidding war which has seen other reported suitors including Kohlberg Kravis Roberts and ChrysCapital fall by the wayside.
The ownership structure following the transaction is unclear. Warburg Pincus and QuEST could not be reached for comment at press time. Bain declined to comment.
QuEST designs and manufactures engineering software for clients such as GE, Rolls Royce and Airbus. The Carlyle Group, investing from the $170 million Carlyle Asia Venture Partners II, had backed the company with $6 million in May 2003. Carlyle has since fully exited its investment, although details of the transaction hav enot been made public.
A spokeswoman for the Bangalore-based company, which is reportedly valued at between $300 million and $330 million, confirmed to PEI Asia in September that QuEST was hoping to raise $60 million by October this year. Fresh capital obtained from the transaction would go to funding the company’s “corporate needs” and to its “services business”, the spokeswoman had said then.
The QuEST deal is just one of several bidding wars for Indian assets to have taken place this year. Most recently, it was reported that four private equity suitors, TPG Capital, The Carlyle Group, Kohlberg Kravis Roberts and Bain Capital, were vying to acquire a minority stake in India’s Hero Honda, India’s largest motorcycle maker. Since then, various media outlets have said that only two private equity players, understood to be KKR and Carlyle, remain in the final round of bids.