India’s leading private equity firm ChrysCapital has acquired California-based Xoriant, a premier Software Engineering and Digital IT services provider with Fortune 100 customers worldwide, for an undisclosed amount. Having a successful track record of investing in business services (IT/engineering/business process), financial services, pharma and consumer-focused companies, this is the firm’s second buyout from ChrysCapital’s ninth fund and its ninth Business Services buyout since inception.
This is also the first acquisition by the company following Sanjay Jalona’s appointment as an Operating Partner for investments in the Business Services sector, who was the CEO and Managing Director at Larsen & Toubro Infotech (LTI) before the company’s merger with Mindtree.
Sanjay Jalona told Business Today: “There is a shortage of new age digital services companies of $500 million – $1 billion size and we see an opportunity to create new tech platform that can fill this void. Xoriant, with its unique technology offerings, engineering capabilities along with its marquee blue-chip clients, is a perfect fit to be mothership of such a new platform.”
Headquartered in Sunnyvale, California, Xoriant has a global workforce of 5000. Post the acquisition, ChrysCapital plans to grow this company both organically and by plugging in the right capability companies to drive significant value to its customers.
Commenting on how ChrysCapital will bring value to the company, Jalona explained, “ChrysCapital has been strongly engaged in tech sectors for the last two decades where we have been early investors. Over the various buyouts that we have done in the sector, we have built strong capabilities in terms of value adds that can be brought to the portfolio companies in a structured way. Broadly, our enhancing unit, which has industry and consulting experts participate and support portfolio companies in 5 different streams: Business Strategy refinement and Go to Market focus; Account planning process; Operations streamlining through systems and processes; Acquisition of companies and Talent Acquisition. Our belief in the leadership team, capabilities and customer references give us great confidence with Xoriant, and we look forward to working with the leadership across streams to drive growth and differentiation.”
Post this acquisition, ChrysCapital will continue to focus on customer centricity, capability enhancement and talent enrichment to improve client satisfaction.
On the employee front, Jalona added: “We also plan to communicate to Xoriant’s employees that this is a great growth opportunity for them. As Xoriant gets investments and grows even faster than before, we’d create better and larger opportunities for all our employees.”
As per Jalona, CrysCapital will look at gaps in capabilities and talent that needs to be filled in and hopes to attract the best talent available in the marketplace.
Also read: TCS Q3 results: 5 things to watch on Monday as IT firm shares December quarter earnings
Also read: ‘About valuations, not values’: Is Byju’s affordability test just an eyewash?