Ashraf Padanna

British private equity firm Apax Partners and alternative asset manager Blackstone have announced a $450 million investment in Indian travel tech major IBS Software.

The Kerala-based firm provides software support to the global travel and logistics industry and its clients include Emirates, Etihad and Abu Dhabi National Oil Company. “There is tremendous growth potential ahead and we look forward to leveraging our software experience to help IBS become a world leader in travel and logistics software,” a press release the company issued quoted Apax Partner Jason Wright as saying.

“Having closely monitored the travel software sector over the last several years, IBS Software stood out as uniquely positioned in the industry, offering a next-gen software suite that we believe is truly unrivalled.” It said the group will acquire a “significant minority stake” in the company. Apax will partner closely with IBS Software’s founder and executive chairman VK Mathews who will remain the majority shareholder. Mathews described the deal as a new phase in his mission to transform how travel companies operate in a digital world.

“As the travel industry rapidly embraces digitalisation, we have a vital role to play in helping our customers accelerate revenues, drive efficiency and create differentiated customer experiences,” its chief executive officer Anand Krishnan said.

“Apax has deep experience in partnering with leading SaaS providers and will be a strategic partner for IBS Software as we embark on a new phase of growth. We thank Blackstone for helping us create real value and a true partnership.”