Apax Partners to acquire 40% stake in Quest Global for $2.1 billion

9 Feb 2023 , 10:13 AM

According to multiple sources, the private equity firm Apax Partners is set to acquire a significant minority stake in Quest Global Services, a leading engineering outsourcing firm, after outbidding the only other firm contender, The Carlyle Group.

Binding bids were submitted last week, but TA Associates, the race’s third party, did not participate.

Apax is looking to buy up to 40% of the company from its two existing investors, Advent International and Bain Capital, for $2.1 billion. The two funds own approximately 33% of the company. GIC, a Singaporean investment firm with a small 2-3% stake in the company, may also join. Some of the co-founders and management are also willing to be diluted.

Quest Global was valued at $1.8 billion in 2021 after an investor consortium comprised of home-grown PE investors Chrys Capital and True North acquired a less than 10% stake in the company.

Quest, established in 1997 by ex-GE engineer Ajit Prabhu and Aravind Melligeri, boasts a client list that encompasses major names such as Pratt & Whitney, Rolls Royce, BMW, Airbus, and GE. However, two of its key clients, Rolls Royce and Apple, have stopped doing business with the company in recent years.

The company specializes in aerospace and defense, automotive, energy, hi-tech, healthcare, medical devices, rail, and semiconductor industries, with operations in 17 countries and 56 global delivery centres.

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