Goldman Sachs Merchant Banking Division and Everstone Group have agreed to acquire a “significant” stake in Infostretch, a provider of digital engineering services. No financial terms were disclosed.
SANTA CLARA, Calif.–(BUSINESS WIRE)–Infostretch, a leader in digital engineering services, today announced that Goldman Sachs Merchant Banking Division and Everstone Group (Everstone) have signed a definitive agreement to acquire a significant stake in the company. The investment will help accelerate the company’s business growth and expand its digital engineering service offerings for both enterprise and digital native companies. Financial terms related to the announcement were not disclosed.
“We’re very pleased to partner with Goldman Sachs and Everstone Group to continue our aggressive growth and expansion,” said Rutesh Shah, CEO and co-founder of Infostretch. “The expertise and reputation we have built over the last fifteen years has put us in the position to advance the digital initiatives of some of the world’s leading companies and brands. This investment will enable us to build on those strengths and take advantage of the growing need for more innovative digital solutions in verticals like healthcare, financial services and technology.”
Demand for digital product engineering services has grown rapidly. According to research firm IDC, Global spending on Digital Transformation Technologies and services is forecasted to grow 10.4% in 2020 to $1.3 trillion.
According to research firm Zinnov, the digital engineering services market is expected to reach $687 billion by 2023, a five-year CAGR of 18%. This growth has been fueled by businesses looking for new ways to differentiate products and services, engage with customers in new ways, and streamline operations.
Infostretch has made its mark by helping both enterprises and digital startups accelerate their digital initiatives from strategy and planning through to execution, and its growth has outpaced the growth of the digital engineering service sector as a whole. The company works across the entire software development lifecycle, from strategy through execution and operations, helping companies overcome the biggest technical obstacles in their digital efforts. Its team of 1,200+ global engineers offers core capabilities in cloud, data, IoT, mobile and UI/UX, leveraging data and analytics in every engagement to speed cycle time, increase efficiency, and reduce risk. With Goldman Sachs Merchant Banking Division and Everstone Group on board, the company can leverage the firms’ relationships, capabilities of their domain specific operating partners and their merger & acquisition (M&A) experience, as it looks to continue to grow the business and expand its portfolio of solutions globally. With regards to the M&A, Infostrech plans to be active to strengthen its capabilities in the digital stack.
“We saw an opportunity to invest in a company that has demonstrated an ability to help organizations clearly distinguish themselves via the latest digital technologies,” said Harsh Nanda, a Managing Director in the Goldman Sachs Merchant Banking Division. “Infostretch has built an impressive brand and list of loyal clients in healthcare, financial services and high tech. Their global presence and ability to apply the latest capabilities in areas like AI and analytics with best practices in Agile and DevOps set them apart in the digital engineering space.”
“Digital will be the core differentiator for businesses of all sizes in almost every segment over the next five to ten years,” said Avnish Mehra, Senior Managing Director at Everstone Group. “With its expertise in emerging technologies and the ability to incorporate intelligent automation across the development lifecycle, we think Infostretch is well positioned to be one of the premier digital engineering service providers in the market.”
About Goldman Sachs Merchant Banking Division
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division (MBD) is the primary center for the firm’s long-term principal investing activity. MBD is one of the leading private capital investors in the world with investments across private equity, infrastructure, private debt, growth equity and real estate.
About Everstone Group
Everstone is one of Asia’s premier investment groups focused on cross border North America – Asia investments as well as domestic investments in India and South East Asia. The group has assets in excess of US$5 billion across private equity, real estate, infrastructure and venture capital. Everstone has a significant resource base across its offices in New York, India, Singapore, London and Mauritius, comprising best-of-breed investing, operations and strategic resources with significant experience and skills. For more information, visit www.everstonecapital.com
Infostretch is a pure-play digital engineering services firm focused on helping companies accelerate their digital initiatives from strategy and planning through execution. We leverage deep technical expertise, Agile methodologies and data-driven intelligence to modernize systems of engagement and simplify human/tech interaction. We deliver custom solutions that meet customers’ technology needs wherever they are in their digital lifecycle. Infostretch works with both large market-leading enterprises and emerging innovators — putting the company’s expertise to work in order to enable new products and business models, engage with customers and partners in new ways, while creating sustainable competitive differentiation. For more information, visit www.infostretch.com