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HCL Technologies, Sumeru Equity team up to acquire Actian
Posted on Friday, 13 April 2018 11:45
India’s HCL Technologies has agreed to join forces with private equity firm Sumeru Equity Partners to table a USD 330.00 million offer for US data management company Actian.

The Noida-headquartered suitor is expected to control about 80.0 per cent of the target, while the Californian buyout group will control 20.0 per cent, following closing.

Actian is billed as a leader in hybrid data management, cloud integration and analytics worldwide, helping businesses solve their data challenges with market leading products such as Actian Vector, the fastest columnar database.

Some of the group’s other products include hybrid cloud data integration platform Actian DataConnect, and Actian X, a database for next generation operational analytics.

C Vijayakumar, chief executive of HCL, said: “Actian will play a critical role in enhancing HCL’s Mode 3 offerings in data management products and platforms.

“Actian’s products when combined with HCL’s Mode 2 solution offerings like Cloud Native, Digital and Analytics, and DRYICE, will be a powerful proposition to harness the power of hybrid data.”

The acquisition is expected to add significant intellectual property to the buyer’s existing capabilities.

HCL will finance the transaction by making an equity contribution of USD 164.00 million and debt of USD 125.00 million, with Sumeru Equity and Rohit De Souza, chief executive of Actian, contributing USD 40.00 million and USD 1.00 million.

It is expected that the head of the target’s operations will retain a 0.5 per cent interest in the coming following closing.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 832 deals targeting US-based data processing, hosting and related service providers announced since the start of 2018.

The largest such transaction involved, through Malbec Acquisition, acquiring online integration platform-as-a-service group MuleSoft for USD 6.50 billion.

Online sales performance management group Callidus Software, Cloud-based oncology data software developer Flatiron Health and investment and financial management firm SS&C Technologies Holdings, among others, have also been targeted this year.

© Zephus Ltd