Blackstone Inc is in talks with several private equity funds to sell a significant minority stake in IBS Software after plans to list overseas failed, two people familiar with the development said.
The private equity giant has hired investment bank JPMorgan to sell at least 40% of its total 44% stake in the travel and hospitality software provider for about $1 billion, the people above said on condition of anonymity. That said, adding process is still in the early stages.
Spokespeople for JP Morgan and Blackstone declined to comment. Representatives for IBS Software did not respond to a request for comment by press time.
Blackstone acquired a minority stake in IBS Software in 2015 from General Atlantic and other shareholders for approximately $170 million.
The people cited above said the founders have no interest in selling their stake.
IBS Software provides solutions to Airlines, Hospitality and Logistics businesses.
The company had made a confidential filing for a US listing in 2022, seeking a valuation of $2 billion.
It was looking to raise about $500 million at the time, Bloomberg Reported in June 2022. Since then, software valuations have come down globally.
Founded in 1999 by VK Mathews, IBS Software reported global revenue of $145 million in fiscal year 2019. Its latest global revenue could not be traced.
According to its website, it also has a presence in the US, Canada, Japan, Australia and Dubai.
Blackstone has made several other investments in software technology services over the years.
It has a majority stake in Mphasis Limited, which provides cloud and digital solutions to companies in the banking, insurance and financial services sectors.
In November 2022, Blackstone acquired R Systems International, an information technology services company that provides digital product engineering services, for $359 million.
Blackstone has more than $649 billion in assets under management and includes investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit and real assets. According to website.
In India, Blackstone also owns Essel Propack, Aadhar Housing Finance, edtech business Simplilearn, and PGP Glass (formerly Piramal Glass).
Separately, Blackstone Embassy is also in talks to exit a portion of its stake in the REIT. reuters reported last month
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