Canada Pension Plan Investment Board to acquire an approximate 48% atake in GlobalLogic Inc. from Apax Funds
Canada Pension Plan Investment Board and Apax Partners LLP announced that CPPIB has signed a definitive agreement to acquire an approximate 48% stake in GlobalLogic Inc., a global leader in digital product development services, from funds advised by Apax. Apax funds will retain an equal stake to CPPIB in the company.
Founded in 2000, GlobalLogic is a San Jose, California-based product engineering services company with over 11,000 employees worldwide. The company helps clients build innovative digital products to enhance customer engagement, user experience and service capabilities. GlobalLogic’s clients represent well-known global brands across multiple industry verticals and the company has experienced significant revenue growth over the past three years.
“This is a compelling opportunity for CPPIB to back a highly successful management team in what is a rapidly growing and evolving software engineering services sector,” said Ryan Selwood, Managing Director, Head of Direct Private Equity, CPPIB. “GlobalLogic’s market-leading position, exceptional track record and deep customer relationships will enable it to continue capitalizing on technology megatrends. We look forward to working with the GlobalLogic management team and Apax, a longstanding partner of ours, on the company’s next phase of growth.”
GlobalLogic is instrumental to helping brands design and build the software and digital applications that are critical to their customers’ continued innovation and competitive differentiation. Demand for these services has grown significantly in the past five years and is expected to continue to do so as next-generation cloud-based software platforms, mobile and web applications, and Internet of Things (IoT) have amplified the urgent need for design-led software development expertise. Creating these types of products requires advanced skill-sets, as well as large development teams to build and support these solutions that truly accelerate digital innovation for customers.
“GlobalLogic performed strongly in the first three years of our collaboration thanks to its management team successfully executing on an ambitious global growth plan. GlobalLogic has seen significant returns from early investments in customer focus and in building differentiated capabilities to drive digital transformation for a number of large customers,” said Rohan Haldea, Partner, Apax Partners. “We are thrilled to have CPPIB come on board as a long-term investor to help take GlobalLogic to a new level.”
Through this investment, CPPIB gains a foothold in a dynamic market segment. In turn, GlobalLogic and funds advised by Apax now have a long-term capital partner to continue supporting GlobalLogic’s growth strategy.
“In the past three years with Apax, we’ve enjoyed a 20%+ compound annual growth rate (CAGR), consistently outperforming the broader product engineering services (PES) market,” said Shashank Samant, CEO, GlobalLogic. “We look forward to leveraging the combined resources of Apax and CPPIB, a well-capitalized partner, to help us continue our strategy and execute our growth agenda for years to come.”