PE Majors CVC Capital And Warburg Pincus In Fray To Buy To The New

Private equity players CVC Capital and Warburg Pincus have reportedly joined the race with three more global strategic companies to snap up Singapore-based To The New, a deal which will value the digital technology company at $600 Mn.

The binding bids are expected by next month, according to a report by ET.

Founded by IT veterans Deepak Mittal, Narinder Kumar, Raman Mittal and Satya Sharma, To The New offers product engineering, cloud and FinOps services to enterprises, SaaS and consumer tech companies.

The report further said that the acquisition will take place in two phases. Initially, a 70% stake will be acquired, with the remaining stake to be secured in a subsequent phase.

With a clientele including TataSky, HDFC Funds, Indigo Airlines, Maruti Suzuki, Sony Liv, To The New operates from its six locations – Singapore, New Delhi, Dehradun, Dubai, New Jersey, and Sydney catering to over 300 customers worldwide.

To The New leverages its partnership with all leading hyperscalers like AWS (Premier Partner), Azure, and GCP to provide end-to-end cloud professional and managed services to its customers.

The company has posted a revenue of $146 Mn in FY23 and is expected to touch $200 Mn in revenue, with an EBITDA of $35 Mn in FY24, the report said.

CVC Capital was one among the contenders for acquiring Blackstone-owned minority stake in IBS Software, the leading SaaS solutions provider to the global travel industry. Later in May, Apax Partners acquired the stake.

CVC Capital’s India portfolio includes Sajjan India Ltd, leading agrochemical makers; cancer care chain Healthcare Global Enterprises and legal services firm UnitedLex BPO. In 2021, CVC Capital Partners also won the rights to operate the Ahmedabad-based Indian Premier League cricket franchise (Gujarat Titans) for INR 5,625 Cr ($700 Mn).

Additionally, in 2022, New York-headquartered private equity firm Warburg Pincus acquired a majority stake in Vistaar Finance.