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Bridgepoint to acquire majority stake in Qualitest
Posted on Thursday, 11 July 2019 10:54
Private equity group Bridgepoint has agreed to take a majority stake in pure-play outsourced software testing and quality assurance specialist Qualitest from Marlin Equity Partners, which will retain a minority holding in the business.

The companies did not disclose terms of the deal; however, people with inside knowledge of the situation told Reuters the company is worth about USD 420.00 million.

Sources also spoke to the Telegraph and suggested the deal is valued at GBP 350.00 million.

Founded in 1997, the target offers a wide range of artificial intelligence-powered quality engineering and testing services, deploying engagement models tailored to the precise testing needs of key industries and technology platforms.

The group has a delivery application that reaches the US, the UK, Israel – where it is headquartered – Romania and India, with clients operating in financial services, retail, telecommunications, healthcare, insurance and media.

Qualitest was picked up by Marlin in 2016 for a reported value of GBP 67.00 million.

Bridgepoint expects the market that the company operates to be growing at 13.0 per cent per year, driven by the needs of a USD 32.00 billion global outsourced segment where software performance has become more business critical.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,812 deals targeting computer systems design and related service providers announced worldwide in 2019 to date.

The largest of these involves Atos selling a 23.5 per cent stake to shareholders in French electronic payment processing services developer Worldline in a transaction worth EUR 2.44 billion.

ConnectWise, EVRY, Efront Holding, NSO Group Technologies and the KEYW Holding Corporation, among others, have all been targeted in deals this year.

Zephyr also shows that software publishers have featured in 2,098 mergers and acquisitions in 2019 so far, two of which topped USD 10.00 billion.

These involved Salesforce agreeing to buy Tableau Software for USD 15.70 billion, while Hellman & Friedman, Blackstone, JMI Management and Canada Pension Plan Investment Board, via United Parent, picked up Ultimate Software Group for USD 11.00 billion.

© Zephus Ltd