Multiples Announces Acquisition of Controlling Stake in Qburst for USD 200 Million Investment in Enterprise Technology

Private equity firm Multiples has announced its acquisition of a controlling interest in Qburst, a digital product engineering company based in Kerala. This deal, valued at USD 200 million, involves co-investors and marks the largest control transaction in technology services for Multiples. The agreement has been formalised with definitive documents signed by all parties involved.

Representative image

Qburst, established in 2004, provides a range of services including digital product development, enterprise digitalisation, data analytics, cloud services, AI and generative AI services, automation, DevOps, and digital marketing enablement. The company employs 3,000 people across North America, Japan, the Middle East, Europe, and India. This acquisition is expected to enhance Qburst's capabilities through strategic investments and talent acquisition.

Strategic Expansion in Enterprise Technology

Renuka Ramnath, founder and CEO of Multiples, expressed optimism about the partnership's potential to drive significant success for Qburst. "Our partnership will drive transformational success for the company, backed by exceptional talent addition, increased investments in emerging technologies and strategic acquisitions," she stated. The founders of Qburst—Prathapan Sethu, Binu Dasappan, and Ansar Shihabudeen—will retain a substantial stake to maintain continuity in the company's practices and values.

Multiples is enhancing its US origination capabilities as part of its strategy to engage in more large-scale control transactions. Manish Gaur, managing director and head of enterprise technology at Multiples, highlighted the importance of enterprise tech as a priority sector. He mentioned that the firm plans to invest nearly USD 2 billion in this sector over the next five years.

Future Prospects for Qburst

Prathapan Sethu expressed confidence in the partnership with Multiples. "I believe our partnership with Multiples will help us achieve something extraordinary in the years ahead," he said. This collaboration is anticipated to bring about significant advancements for Qburst through strategic initiatives and enhanced technological capabilities.

The acquisition signifies a pivotal moment for both Multiples and Qburst as they aim to leverage emerging technologies and expand their reach globally. With strong leadership and strategic investments, both entities are poised for growth in the competitive technology services sector.