New York-based private equity firm Warburg Pincus has paid $75 million for a minority stake in outsourced engineering services firm Quest Global Services. Singapore-based Quest Global, which has more than 2,000 employees across India, the US, Japan and Europe, has customers in the aerospace and defense and energy industries. The company will use the new funding for growth.
QuEST Global Services Pte Ltd, a leading provider of outsourced engineering services, and Warburg Pincus, a leading private equity firm, today announced that they have entered into an investment agreement.
“We are delighted to be working with Warburg Pincus, a firm with significant experience of investing in technology and technology-enabled service providers. Through this investment we plan to fund our infrastructure development and invest in strengthening our core business to expand growing needs of our customers.”
Under the terms of this agreement, Warburg Pincus will invest about US$ 75 million in QuEST Global Services in exchange for a minority ownership stake. This investment reflects Warburg Pincus’ core philosophy of partnering with talented management teams leading differentiated businesses.
QuEST Global Services is ranked by the industry-standard Black Book of Outsourcing as the no. 1 provider of outsourced engineering services in the world. The company has over 2000 employees and delivery centers in India, USA, Italy, Japan, Germany, France, Spain and UK. It services customers in aerospace and defense, aero engines, power generation, oil & gas and industrial products, and specializes in establishing dedicated low cost engineering centers for global engineering majors.
Commenting on the investment, Ajit Prabhu, CEO, QuEST Global Services, said: “We are delighted to be working with Warburg Pincus, a firm with significant experience of investing in technology and technology-enabled service providers. Through this investment we plan to fund our infrastructure development and invest in strengthening our core business to expand growing needs of our customers.”
Commenting on the investment, Vishal Mahadevia, Managing Director, Warburg Pincus India Pvt Ltd said: “Over a period of 14 years QuEST has established a strong position in the engineering services space. Co-founders Aravind Melligeri and Ajit Prabhu have established a business located across 12 global delivery centers. Their strong commitment towards quality and focus on customer service has helped them emerge as a preferred partner to several blue-chip organizations. Warburg Pincus looks forward to working in close partnership with the QuEST Global team to further strengthen the company’s position as a leading provider of engineering services.”
Bank of America Merrill Lynch was the banker to the issue.
About QuEST Global Services
QuEST Global Services is a leading provider of outsourced engineering services with over 2000 employees and operations across USA, Europe and Asia. For more information, please visit www.quest-global.com.