Sequoia Capital, a US venture capital firm, has acquired a 9 percent stake in Flextronic Software Systems, a California software development and solutions business acquired by Kohlberg Kravis Roberts earlier this year.
Flextronics International and KKR have completed the sale of a controlling stake to the US buyout firm in a transaction that values the entire software business at approximately $900 million, according to a statement.
Discussions for Sequoia to acquire a 9 percent stake, valued at $35 million, began in spring, according to a spokesman for KKR. Sequoia Capital India affiliate declined to comment. Flextronics will continue to hold a 15 percent stake in the business.
Nearly 70 percent of the software business revenue is derived from its Indian units, which are accountable for 85 percent of 6,100 employees globally.
KKR has referred to the acquisition as its first in India. It is also the largest buyout to date in the country.
Ash Bhardwaj, Flextronics software chief executive officer and his management team will continue to lead the business which is expected to be renamed. Flextronics provides electronics manufacturing services to aerospace, automotive, computing, consumer digital, industrial, infrastructure, medical and mobile Original Equipment Manufacturers.