TA Associates has made its fourth transaction in India by way of an undisclosed-sized investment in pathology and diagnostics company Dr Lal Pathlabs.
The investment buys TA Associates a 16 percent stake in the company, a source close to the deal stated, while declining to comment on the actual deal size. Local media outlets put this at INR1.7 billion (€28.6million; $36.3 million).
The source also confirmed that “a portion” of TA Associates’ stake was purchased via a secondary transaction from private equity peer Sequoia Capital.
TA Associates and Sequoia Capital declined to comment.
Sequoia Capital had reportedly been in the market to dilute its stake in the Delhi-based company as early as May this year, according to a previous report by India's Economic Times.
“Sequoia has completed over five years in our firm and now it is only natural for it to seek an exit option,” said Dr Arvind Lal, chairman and managing director of the Delhi-based company was quoted as saying at the time.
Sequoia acquired close to a third of the privately-owned Dr Lal for INR 500 million in 2005. As of May this year, the company was valued at over INR8 billion.
Sequoia will sell its remaining stake when Dr Lal PathLabs lists on the public markets, which is expected to happen in the next one to two years, said a source speaking to The Times in May.
Earlier this year, TA Associates acquired an undisclosed minority stake in Micromax Informatics, an Indian mobile handset provider, for $45 million, marking the firm’s first investment in the country since the opening of its Mumbai office in 2009.
In August 2009, the firm closed TA XI, its 11th growth investment fund, on its $4 billion hard-cap, beating its $3.5 billion target. The firm’s previous fund closed on $3.5 billion in March 2006.
With other offices in Boston, Menlo Park and London, the US-based mid-market private equity firm manages more than $16 billion in capital and has invested in over 400 companies worldwide.