Multiples Alternate Asset Management to invest $2 bn in enterprise tech

Announces investment in QBurst of $200 million

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Private equity (PE) player Multiples Alternate Asset Management (Multiples), founded by Renuka Ramnath, aims to invest close to $2 billion in enterprise technology over the next five years. The firm is making enterprise technology one of its priority sectors.

 

The company today announced the signing of definitive documents to acquire a controlling stake in digital product engineering platform QBurst with an investment of around $200 million. This is the largest control investment in a technology services company by Multiples.

 

Founded in 2004, QBurst has grown into a global leader in digital solutions, offering services in digital product development, enterprise digitalisation, data analytics, cloud services, artificial intelligence (AI) and generative AI services, automation, DevOps, and digital marketing enablement.

 

With a strong presence across North America, Japan, the Middle East, Europe, and India, the company has over 3,000 employees and maintains an agile, customer-centric approach while fostering top engineering talent.

 

Renuka Ramnath, founder, managing director (MD) and chief executive officer (CEO) of Multiples, said, "Our partnership will drive transformational success for the company, backed by exceptional talent addition, increased investments in emerging technologies, and strategic acquisitions. Multiples is focused on technology services companies operating in high-growth areas. We have also stepped up our US origination capabilities, marking the beginning of many such large-scale control transactions."

 

While Multiples holds a controlling stake, the founders—Prathapan Sethu, Binu Dasappan, and Ansar Shihabudeen—will continue to have a meaningful stake, ensuring the continuity of the best practices and values that have shaped the company's growth, said the PE firm in a statement.

 

Manish Gaur, managing director and head of enterprise technology, Multiples, said, "This investment demonstrates Multiples’ continued focus on technology-driven businesses, as evidenced in our portfolio of companies such as AI and data services player Quantiphi, HR tech business PeopleStrong, customer engagement software-as-a-service (SaaS) business MoEngage, and other tech-centric businesses such as Delhivery, Dream Sports, Acko, Licious, and India Energy Exchange. Enterprise tech is a priority sector for us, and we intend to deploy close to $2 billion in the space over the next five years.”

 

Prathapan Sethu, co-founder of QBurst, said, “My co-founders, Binu Dasappan, Ansar Shihabudeen, and I have built QBurst with a focus on innovation and excellence. In Multiples, we have found a partner who not only shares our values but also brings the strategic prowess and ability to accelerate our aspirations.”

 

The transaction is subject to receipt of statutory and regulatory approvals. BDA Partners acted as the exclusive financial advisor, Shardul Amarchand Mangaldas & Co as the legal advisor, and EY as the tax advisor to QBurst and its founders on the transaction. Anagram Partners acted as the legal advisor, and EY as the financial and tax advisor to Multiples.