Mphasis, Hexaware Technologies, TPG Capital-owned Altimetrik, and the private equity fund ChrysCapital are among the prominent firms showing initial interest in acquiring a majority stake in SLK Software, a technology services company based in Bengaluru, sources familiar with the matter revealed.

Last week, these potential buyers submitted non-binding bids that ranged between ₹4,700 crore and ₹5,600 crore (approximately $550 million to $650 million), according to insiders.

The Amin family, who are the promoters of SLK Software, are seeking a valuation of $800 million for the company, as reported by the Economic Times last month.

Investment bank Avendus is currently overseeing the sale process, which has garnered considerable interest due to the company’s projected growth.

SLK Software is expected to achieve an EBITDA of $40 million by FY25, indicating a robust financial outlook for the firm.

Company Background

Founded in 2000, SLK Software is headquartered in Cincinnati and specializes in artificial intelligence (AI), intelligent automation, and analytics. The firm offers a diverse range of technology solutions to clients in various sectors, including manufacturing, banking, insurance, and financial services.

With operational centers in seven countries, SLK Software has a significant presence, boasting two locations each in India and the United States, specifically in Bengaluru, Pune, Cincinnati, and Chicago, alongside offices in France, the Netherlands, Germany, the UK, and Singapore.

Previous Transactions

In 2021, the Amin family divested a controlling stake in SLK Global Solutions, another Bengaluru-based entity focused on business process management (BPM), to IT company Coforge for ₹920 crore.

As of now, emails sent to SLK Software’s CEO, Ajay Kumar, as well as to representatives from ChrysCapital, Altimetrik, and Hexaware have not received any response by press time on Monday.

Mphasis’ Strategic Approach

An Mphasis spokesperson stated, “As you are aware, the company continuously evaluates various strategic opportunities in its ordinary course of business for its growth and expansion in line with the defined M&A strategies. At this stage, there is no material event/information which requires disclosure under SEBI Regulations, 2015.”

Acquisition Context

This interest in acquiring SLK Software is part of a broader trend in the tech industry, where companies are seeking to expand their capabilities and market reach through acquisitions.

For instance, in June of last year, Indian-American entrepreneur Raj Vattikuti sold his majority stake in Altimetrik, a US-based digital business firm, to TPG Capital. TPG acquired about 60% of the company at a valuation of $1.5 billion (₹12,500 crore).

Altimetrik, which supports a workforce predominantly based in India, operates across 22 global locations, including multiple offices in India spanning cities like Pune, Chennai, Bengaluru, Hyderabad, Jaipur, and Gurgaon.

Conclusion

As multiple companies gear up to explore acquisition opportunities in the technology services sector, SLK Software stands at the forefront, attracting significant attention from potential buyers eager to enhance their technological capabilities and market presence.