Capital International to buy 40% in InterGlobe Tech Quotient for $200 million
, ET Bureau|
Updated: Sep 30, 2017, 12.52 AM IST
NEW DELHI: Capital International is picking up a 40% stake in InterGlobe Technology Quotient (ITQ), the travel reservation and technology services arm of the company that owns IndiGo Airlines, for $200 million, people directly involved in the transaction said.
Capital, one of the largest global investment management firms with assets worth about $1 trillion, beat private equity peer TA Associates, CVC and China’s Fosun Group to seal the deal on Friday.
ITQ, owned by InterGlobe Enterprises, distributes international centralised reservation systems and helps set up, maintain and operate data processing centres. It is a distributor of Travelport in six markets in the Asia-Pacific region, including India and Sri Lanka. Travelport is a travel commerce platform that aggregates content from the global airline, hospitality and travel operator industry and processed travel spending worth $90 billion in 2014.
ITQ distributes Travelport’s global reservation system products Galileo and Worldspan to as many as 12,500 travel agencies. It also provides customised accounting software solutions to aviation and travel clients.
The company reported revenue of Rs 400 crore and operating profit of Rs 170 crore for fiscal 2016. The company, headed by Anil Parashar, has a network that spans over 500 cities with 23 offices reaching out to over 12,000 agency locations.
Rahul Bhatia and his father Kapil Bhatia together own a 63% stake in the company. The remainder is held by Standard Chartered PE, DBS and Credit Suisse, which came on board in 2008 with a Rs 560 crore investment. While the investors get an opportunity to cash out of their eight-year-old investment, the Bhatia family too will trim its stake.
Parashar, CEO of ITQ, declined to comment. Mails sent to Capital did not get a response.
Moelis and Citi were the advisors in the sale. ET first reported in its May 12 edition that Capital was the frontrunner to acquire a 65% stake in the company.
With about $5 billion invested in 80 companies in the emerging markets through six funds, Capital Group has been active in India for the past few years.
Capital, one of the largest global investment management firms with assets worth about $1 trillion, beat private equity peer TA Associates, CVC and China’s Fosun Group to seal the deal on Friday.
ITQ, owned by InterGlobe Enterprises, distributes international centralised reservation systems and helps set up, maintain and operate data processing centres. It is a distributor of Travelport in six markets in the Asia-Pacific region, including India and Sri Lanka. Travelport is a travel commerce platform that aggregates content from the global airline, hospitality and travel operator industry and processed travel spending worth $90 billion in 2014.
ITQ distributes Travelport’s global reservation system products Galileo and Worldspan to as many as 12,500 travel agencies. It also provides customised accounting software solutions to aviation and travel clients.
The company reported revenue of Rs 400 crore and operating profit of Rs 170 crore for fiscal 2016. The company, headed by Anil Parashar, has a network that spans over 500 cities with 23 offices reaching out to over 12,000 agency locations.
Rahul Bhatia and his father Kapil Bhatia together own a 63% stake in the company. The remainder is held by Standard Chartered PE, DBS and Credit Suisse, which came on board in 2008 with a Rs 560 crore investment. While the investors get an opportunity to cash out of their eight-year-old investment, the Bhatia family too will trim its stake.
Parashar, CEO of ITQ, declined to comment. Mails sent to Capital did not get a response.
Moelis and Citi were the advisors in the sale. ET first reported in its May 12 edition that Capital was the frontrunner to acquire a 65% stake in the company.
With about $5 billion invested in 80 companies in the emerging markets through six funds, Capital Group has been active in India for the past few years.
