Secondary Buyout • Business Services

The Carlyle Group and CPP Investments Acquire Hexaware

On June 1, 2021, private equity firm The Carlyle Group and pension CPP Investments acquired business services company Hexaware from EQT Private Capital Asia for 3.0B USD

Acquisition Context
  • This is The Carlyle Group’s 32nd and CPP Investments’ 2nd transaction in the Business Services sector.
  • This is The Carlyle Group’s 28th and CPP Investments’ 30th largest (disclosed) transaction.
  • This is The Carlyle Group’s 334th and CPP Investments’ 58th transaction in the United States.
  • This is The Carlyle Group’s 11th and CPP Investments’ 1st transaction in New Jersey.

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M&A Deal Summary

Date June 1, 2021
Target Hexaware
Sector Business Services
Buyer(s) The Carlyle Group
CPP Investments
Sellers(s) EQT Private Capital Asia
Deal Type Secondary Buyout
Deal Value 3.0B USD

Target Company

Hexaware

Jersey City, New Jersey, United States
Hexaware is a niche mid-sized IT services vendor with a strong focus in domains such as BFSI, Transportation, Logistics and HR-IT solutions. The Company specializes in enterprise solutions, application management and independent testing. Hexaware was founded in 1990 and is based in Jersey City, New Jersey.
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Buyers Overview 2

Buyer

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 435.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


Deal Context for Buyer #
Overall 700 of 750
Sector: Business Services 32 of 34
Type: Secondary Buyout 112 of 130
State: New Jersey 11 of 12
Country: United States 334 of 350
Year: 2021 11 of 28
Size (of disclosed) 28 of 137
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-06-01 Novetta

McLean, Virginia, United States

Novetta is a provider of advanced technology-rich software and IT services to the Intelligence Community and Department of Defense. Novetta is based in McLean, Virginia.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-06-05 Medline

Northfield, Illinois, United States

Medline is a vertically integrated manufacturer and distributor of medical surgical products to hospitals, post-acute facilities and physician offices. Medline’s global manufacturing, sourcing and distribution network enables it to partner with healthcare providers globally, delivering products and solutions that reduce costs, increase supply chain efficiency and improve overall quality of care. Medline was founded in 1966 and is based in Northfield, Illinois.

Buy $34.0B
Buyer
DESCRIPTION

CPP Investments is a Canadian pension fund focused on a variety of investing strategies, including public equities, debt, and alternative investments. The Firm's private equity arm looks to acquire direct stakes in private companies, as well as make fund investments and acquire secondary positions. For direct stakes in companies, CPP looks to invest across North American and Europe and seeks to commit a minimum of $150 million per transaction. CPP has no industry preferences however the Firm will not invest in real assets. CPP Investments was established in 1997 and is based in Toronto, Ontario.


Deal Context for Buyer #
Overall 117 of 176
Sector: Business Services 2 of 4
Type: Secondary Buyout 27 of 46
State: New Jersey 1 of 3
Country: United States 58 of 82
Year: 2021 14 of 23
Size (of disclosed) 30 of 60
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-05-20 Kakao piccoma

Tokyo, Japan

Kakao piccoma is a digital comic app that is available on smartphones, tablets, and personal computers. Kakao piccoma was founded in 2011 and is based in Tokyo, Japan.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-06-07 Crestone Peak Resources

Denver, Colorado, United States

Crestone Peak Resources is an energy company that specialized in the acquisition, exploration, and production of oil and gas. Crestone Peak Resources was formed in 2016 and is based in Denver, Colorado.

Sell -

Seller Profile 1

SELLER

EQT Private Capital Asia

Hong Kong, China

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 125.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

EQT Private Capital Asia is an Asia-focused private equity group specializing in growth equity investments and buyouts of companies valued between $300 million and $1.5 billion. Baring looks for companies that require capital for organic expansion, recapitalizations, or to fund acquisitions. The Group's geographic coverage spans China, India, Japan, Singapore, Hong Kong, and Taiwan. EQT Private Capital Asia was formed in 1997 and is based in Hong Kong.


Deal Context for Seller #
Overall 19 of 32
Sector: Business Services 3 of 5
Type: Secondary Buyout 5 of 9
State: New Jersey 1 of 1
Country: United States 1 of 2
Year: 2021 2 of 4
Size (of disclosed) 2 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-05-18 CrownX

Ho Chi Minh City, Vietnam

CrownX is a consumer-retail platform. The company was established with the vision to become a “Point of Life” platform in order to provide more products and services to Vietnamese consumers online and offline. CrownX is based in Ho Chi Minh City, Vietnam.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-07-09 Logen Co.

Seoul, South Korea

Logen is a domestic parcel delivery company focused on small and mid-volume customers in South Korea. It currently operates a nationwide network of more than 310 agencies managing over 7,200 truck drivers that handle 272 million parcels annually. Logen was formed in 1999 and is based in Seoul, South Korea.

Sell $324M