The Carlyle Group has invested $32.8 million for a 54.85 percent stake in Newgen KnowledgeWorks Private Limited, which provides publishing and technical services for publishers, especially in the U.S., UK and Europe. Carlyle made the investment from First Carlyle Ventures III. Carlyle bought the stake from Franklin Templeton Private Equity Strategy, Aureos South Asia Fund and ePlanet Capital. The firm first invested in Newgen in 2004 and exited its stake in 2011.
Global alternative asset manager The Carlyle Group (NASDAQ: CG) has invested $32.8 million to acquire a 54.85% stake in Chennai, India-based Newgen KnowledgeWorks Private Limited, a provider of publishing and technical services for many of the world’s largest and most prestigious publishers, particularly in the USA, the UK and Europe. Equity for the transaction comes from First Carlyle Ventures III, an investment fund advised by The Carlyle Group.
Carlyle acquired the stake held by Franklin Templeton Private Equity Strategy, Aureos South Asia Fund and ePlanet Capital in Newgen. Carlyle had earlier invested in Newgen in 2004 and exited its investment in 2011.
Prabhakar Ram, Founder & CEO of Newgen said: “Newgen has emerged as a preferred service provider for its clients due to its high service quality, efficiency and focus on automation. We are extremely happy to partner with Carlyle again, which engaged in numerous value creation activities and acted as a catalyst in the growth of the company during its previous stint with Newgen.”
Shankar Narayanan, Managing Director, Carlyle India, said: “Newgen has built an extremely successful business with strong franchise value. We were pleased with Carlyle’s prior investment in Newgen, and we see the same potential for creating value through our latest investment. We will once again leverage Carlyle’s deep industry expertise and global network to support Newgen through our renewed partnership.”
Newgen offers end to end publishing and technical services for books and journals – from content creation till marketing – such as content sourcing, content creation, project management, author liaison, development editing, copyediting, design, artwork and permissions, typesetting/composition, XML creation, ebook delivery, EPUB conversion, bespoke publishing, backlist conversions, mobile app creation and distribution and discoverability solutions for content through their production centers in India, UK and US.
Mr. Narayanan added, “Newgen’s diversification into adjacent businesses is intended to add value and create upside possibilities to its highly consistent and profitable business model.” These include financial publishing through its UK subsidiary Spectra; digital marketing and discoverability through its subsidiary ePagemaker; and bespoke publishing and documentation solutions through its UK subsidiary GPSL.
Since 2000, Carlyle had invested approximately $1.1 billion of equity in approximately 30 transactions in India as of September 30, 2014.
Newgen is a provider of publishing and technical services for books and journals, such as content sourcing, content creation, project management, author liaison, development editing, copyediting, design, artwork and permissions, typesetting/composition, XML creation, ebook delivery, EPUB conversion, bespoke publishing, backlist conversions, mobile app distribution and discoverability solutions. It has production centers in India, UK and US. It has diversified into financial publishing, digital marketing and complex publishing solutions through its subsidiaries. Its UK subsidiary, Spectra offers a SaaS (“Software-as-a-Service”) solution for addressing the publishing and reporting requirements of the fund management/asset management industry. ePagemaker is a digital marketing solutions company specialized to provide end-to-end interactive solutions to clients. GPSL provides, develops and delivers applications and software customized to client requirements to solve complex publishing challenges in various environments such as defense and government.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $203 billion of assets under management across 129 funds and 141 fund of funds vehicles as of September 30, 2014. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700 people in 40 offices across six continents.