Apax Funds to buy stake in travel tech firm IBS Software from Blackstone

To acquire Blackstone's minority stake in the software-as-a-service solutions provider

Funds advised by Apax Partners LLP (Apax) on Monday signed a definitive agreement to buy Blackstone’s minority stake in IBS Software, a provider of software-as-a-service (SaaS) solutions to the global travel and logistics industry, for nearly $450 million. 

Following the transaction, Apax will partner closely IBS Software’s founder and executive chairman, V K Mathews, who will remain the majority shareholder. The transaction is subject to customary closing conditions and is expected to close by the end of the June quarter. Other financial terms were not disclosed.  

“We are entering a new phase in our mission to transform how travel companies operate in a digital world,” said V K Mathews, founder and executive chairman, IBS Software. “This investment is an endorsement of our strategy and our commitment and contribution to the industry, and we have a shared vision with Apax for the future of the business.” 

JP Morgan is the financial advisor to IBS Software and Blackstone, Drew & Napier LLC is the legal counsel to IBS Software and Simpson Thacher & Bartlett LLP is acting as legal counsel to Blackstone. Kirkland & Ellis LLP is legal counsel and Jefferies LLC is acting as financial advisor to Apax.

Anand Krishnan, chief executive officer of IBS Software, said Apax had experience in partnering leading SaaS providers, and will be a strategic partner for IBS Software as the company embarks on a new phase of growth. 

Jason Wright, partner, Apax, said that over the past two decades, IBS Software has invested in products, innovation, and culture, while continuing to scale the business. “We believe there is tremendous growth potential, and look forward to leveraging our software experience to help IBS Software become a world leader in travel and logistics software,” he said.

Amit Dixit, head of Asia Private Equity, Blackstone, said value creation at IBS Software demonstrates Blackstone’s business-building approach to investing and reinforces its conviction in technology as a sectoral theme.