Indium VI (Mauritius) Holdings Limited, advised by Indian private equity firm True North, has acquired a significant minority stake in Accion Group Holdings, a Pittsburgh-based digital and innovation engineering company, from TA Associates and other shareholders of Accion.
According to an announcement, the True North-advised fund, along with co-investors, invested $93 million in Accion Labs to acquire the stake.
With this investment, Indium will partner with TA and the management team of Accion, led by Kinesh Doshi, to help the company evolve into a leader in the digital engineering space.
Founded in 2011, Accion Labs is a global digital engineering company with a specialised focus on digital transformation in global enterprises and technology firms. The company’s primary lines of service include digital consulting, innovation and digital product engineering, data/ML engineering and automation.
True North aims to invest up to 30% of funds that it manages or advises in tech and digital businesses. Thus, IT services, digital engineering and SaaS companies have been important areas of focus for the firm.
This investment comes after conducting extensive due diligence on several companies in the segment.
“Enterprises are adopting digital technologies with a new sense of urgency across the front and backend of business operations. There is a growing need for a new breed of nimble and innovative digital IT players like Accion Labs. We are excited about Accion’s deep digital expertise, customer centricity and its approach to doing business. Most of all, we have strong confidence in the firm’s management team to build Accion Labs into a respected global leader,” said Prasad Thrikutam, partner, True North.
Global private equity firm TA Associates first invested in Accion in 2020 with a belief that the company was uniquely positioned to capitalise on macro trends driving the digital engineering market’s rapid expansion.
“Accion’s growth and continued innovation in the intervening period reconfirms our confidence in this thesis. We are excited to welcome Indium as a new investor, and to continue our partnership with the Accion management team, as we aim to further grow the company,” said TA managing director Dhiraj Poddar.
Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services –TA invests in profitable, growing companies with opportunities for sustained growth and has invested in more than 560 companies around the world.
TA has raised $47.5 billion in capital since its founding in 1968. The firm’s more than 110 investment professionals are based in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong.
True North, meanwhile, has successfully launched six separate investment funds with a combined corpus of approximately $3 billion, including co-investments.
In August, DealStreetAsia reported that The Asian Development Bank (ADB) approved a $50-million equity investment in Indian private equity firm True North’s latest fund.
The ADB commitment is for True North (GIFT) VII, the seventh fund launched by one of India’s oldest PE firms.