Carlyle invests $32.8 million in Newgen KnowledgeWorks1 min read . Updated: 09 Dec 2014, 06:01 PM IST
The stake has been purchased by First Carlyle Ventures III, an investment fund advised by The Carlyle Group
Mumbai: Global alternative asset manager The Carlyle Group LP has invested $32.8 million to acquire a 54.85% stake in Chennai-based publishing and technical services company, Newgen KnowledgeWorks Pvt Ltd, which caters to the US, the UK and European markets.
The stake has been purchased by First Carlyle Ventures III, an investment fund advised by The Carlyle Group.
Carlyle acquired the stake held by Franklin Templeton Private Equity Strategy, Aureos South Asia Fund and ePlanet Capital in Newgen. Carlyle had earlier invested in Newgen in 2004 and exited its investment in 2011.
“Newgen has emerged as a preferred service provider for its clients due to its high service quality, efficiency and focus on automation," said Prabhakar Ram, founder and chief executive officer (CEO) of Newgen.
“Newgen has built an extremely successful business with strong franchise value. We were pleased with Carlyle’s prior investment in Newgen, and we see the same potential for creating value through our latest investment," said Shankar Narayanan, managing director, Carlyle India.
Newgen offers end-to-end publishing and technical services for books and journals—from content creation till marketing—such as content sourcing, content creation, project management, author liaison, development editing, copyediting, design, artwork and permissions, typesetting/composition, XML creation, ebook delivery, EPUB conversion, bespoke publishing, backlist conversions, mobile app creation and distribution and discoverability solutions for content through their production centres in India, the UK and the US.
“Newgen’s diversification into adjacent businesses is intended to add value and create upside possibilities to its highly consistent and profitable business model," Narayanan added. These include financial publishing through its UK subsidiary Spectra; digital marketing and discoverability through its subsidiary ePagemaker; and bespoke publishing and documentation solutions through its UK subsidiary GPSL.
Since 2000, Carlyle has invested approximately $1.1 billion in approximately 30 transactions in India as of 30 September.
Since last year the company has been acquiring majority control in its portfolio companies and then selling it off to a third party investor. It sold its majority stake in dairy firm Tirumala Milk Products Pvt Ltd to Groupe Lactalis SA. In another transaction, Carlyle acquired majority stake in Ahmedabad-based Elitecore Technologies Pvt Ltd, the parent company of Cyberoam, and sold its majority stake to UK-based Sophos Ltd.