Global buyout major Advent International has bought into software developer Encora at $1.5bn valuation. Existing majority shareholder Warburg Pincus will retain a minority stake.
Encora provides outsourced software products using deep technical expertise in machine learning, AI, data science, and cloud services. It runs 40 offices across the globe.
The firm said the partnership will enable Encora’s global growth, expand its delivery model and advance its customer-facing digital services.
Shweta Jalan and Jan Janshen, managing partners at Advent, said in a joint statement, “We have seen tremendous growth in the digital technology services sector over the past few years, as the need for strong technology products has escalated across industries.
“We believe Encora is well positioned to capitalize on the growing digital services market, and we are excited to partner with Venu, Encora’s talented management team, and Warburg Pincus to support the company’s growth in key markets across North America, Europe, India, Asia Pacific and Latin America, where Advent has a strong presence and domain expertise.”
Steven Glenn, managing director, CFO and COO at Warburg Pincus, said, “Encora has built an industry leading position, driven by its sharp customer focus and ability to attract high quality technology talent across the globe.Advent is a great addition to the team and we look forward to continuing to support Encora’s bright future.”
Advent surged to a $4bn final close for its second dedicated tech fundraise earlier in the month.
The firm was reportedly seeking up to $25bn for the mammoth new fund in October.
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