Indian travel tech company IBS Software received approx $450 M investment from Apax

Approximately $450 million will be invested by Apax Partners LLP (Apax) to purchase a sizable minority stake in IBS Software, an Indian company that offers cutting-edge Software-as-a-Service (SaaS) solutions to the world’s travel and logistics industry, from American fund Blackstone.

IBS Software said in a statement that Apax will work closely with V K Mathews, the company’s founder and executive chairman, who will continue to hold the majority of shares, after the transaction.

“We’re excited to partner with Apax as we enter a new phase in our mission to transform how travel companies operate in a digital world,

“This investment is an endorsement of our strategy and our commitment and contribution to the industry, and we have a shared vision with Apax for the future of the business,” said V K Mathews, Founder and Executive Chairman of IBS Software.

Anand Krishnan, Chief Executive Officer of IBS Software, added: “As the travel industry rapidly embraces digitalization, we have a vital role to play in helping our customers accelerate revenues, drive efficiency and create differentiated customer experiences.”

He claims Apax, which will be a strategic partner for IBS Software as they enter a new phase of growth, has extensive experience working with top SaaS providers.

IBS Software, which was established in 1997 with the goal of redefining the future of travel through technological innovation, offers next-generation SaaS solutions that support the most crucial operations at the top aviation, tour and cruise, hospitality, and logistics firms in the world.

IBS Software supports travel companies in accelerating innovation and driving efficiency across a broad range of core business processes, including cargo and logistics, flight operations, passenger services, loyalty programs, cruise operations, energy and resource logistics, and distribution platforms for the hospitality sector.

A global team of 4000 professionals supports the company.

“Having closely monitored the travel software sector over the last several years, IBS Software stood out to us as uniquely positioned in the industry, offering a next-gen software suite that we believe is truly unrivalled,” said Jason Wright, Partner, Apax.

“Over the last two decades, IBS Software has invested in products, innovation, and culture, while continuing to scale the business,

“We believe there is tremendous growth potential ahead and look forward to leveraging our software experience to help IBS Software become a world leader in travel and logistics software,” he added.

IBS is already among the biggest enterprise SaaS companies to come out of India, according to Amit Dixit, Head of Asia Private Equity at Blackstone. IBS has transformed into a SaaS company with global leadership in travel and logistics.

“Value creation at IBS Software demonstrates our business-building approach to investing and reinforces our conviction in Technology as a sectoral theme,” he added.

The deal is subject to the usual closing requirements and is anticipated to close at the end of the second quarter.

IBS Software and Blackstone are both receiving financial advice from J.P. Morgan, legal counsel from Drew & Napier LLC for IBS Software, and legal counsel from Simpson Thacher & Bartlett LLP for Blackstone.

Both Jefferies LLC and Kirkland & Ellis LLP are serving as Apax’s legal and financial advisors.

Global private equity advisory company Apax has worked to foster business growth and game-changing concepts.

Over $65 billion in commitments have been raised and advised by the firm.