SLK Software’s Promoters Eye Major Stake Sale: What You Need to Know!

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SLK Software's promoters look to sell majority stake

SLK Software’s Directors Seek Majority Stake Sale

Mumbai: Sevicing the Future with a New Leadership?

The promoters of SLK Software, a Bengaluru-based technology services firm, are poised to sell a majority stake in the company. Conversations around the transaction have been initiated with various buyout funds, and non-binding bids are anticipated in the coming weeks, according to sources close to the matter.

The Amin Family’s Decision

Parth Amin and Roshen Amin, the family behind SLK Software, have engaged Avendus to oversee the sales process. This strategic move reflects their intention to potentially enhance the firm’s growth trajectory through new investment and leadership.

Valuation Insights

Market estimates suggest that the deal could value SLK Software at approximately $800 million (around ₹7,000 crore). This valuation aligns with the firm’s projected earnings before interest, taxes, depreciation, and amortization (EBITDA) of $40 million for the fiscal year 2025.

Performance Metrics

SLK Software is expected to be valued at 18-20 times its projected EBITDA, according to insights from multiple industry analysts. This financial forecast presents a promising outlook for potential investors.

Company Overview

SLK Software’s Promoters Look to Sell Majority Stake

Founded in 2000, SLK Software specializes in artificial intelligence, intelligent automation, and analytics, providing tailored technology solutions to customers across various sectors. Its service portfolio includes software-related offerings in manufacturing, banking, insurance, and financial services.

Diverse Service Offerings

The company delivers comprehensive computer data processing services, focusing on areas such as contact center operations, analytics, and consulting services in banking, manufacturing, and utilities. This array of services is designed to optimize the efficiency of customer service operations.

Market Presence

With a primary focus on the US market, SLK Software caters to regional banks and manufacturers, as well as clients in the oil, gas, energy, and utility sectors. The firm’s website emphasizes its commitment to delivering high-quality services tailored to the needs of these industries.

Employee Strength

SLK Software boasts a solid workforce of 5,000 employees. The company has established operations in major Indian cities such as Bengaluru and Pune, in addition to offices in the US cities of Cincinnati and Chicago.

Global Footprint

Internationally, SLK Software has a presence in France, the Netherlands, Germany, the UK, and Singapore. This diverse geographical reach illustrates the company’s ambition to expand its service offerings across various global markets.

Management Communication

As of press time on Thursday, there has been no response to inquiries directed to SLK Software CEO Ajay Kumar regarding the ongoing stake sale process.

Previous Transactions

In a significant move back in 2021, the Amin family previously sold a controlling stake in SLK Global Solutions, a business process management provider, to IT company Coforge for ₹920 crore. This earlier sale reflects the family’s strategic decisions in navigating the technology sector.

Holding Companies

In addition to SLK Software, the group holds stakes in two other companies: Avo Automation and Maldivian Mermaid, diversifying their portfolio further within the technology and service industries.

Conclusion

The impending sale of a majority stake in SLK Software presents a pivotal opportunity for potential investors interested in a rapidly growing technology services sector. With its established reputation and comprehensive service offerings, the company is well-positioned to attract significant interest in the buyout market.

Frequently Asked Questions (FAQs)

  1. Who are the promoters of SLK Software?
    The promoters of SLK Software are the Amin family.
  2. What is the expected valuation of SLK Software?
    The expected valuation of SLK Software is approximately $800 million (around ₹7,000 crore).
  3. Who is managing the sale process?
    The sale process is being managed by Avendus.
  4. In which sectors does SLK Software provide services?
    SLK Software provides services in manufacturing, banking, insurance, financial services, oil and gas, and utilities.
  5. What was the previous significant sale involving the promotors?
    In 2021, the promoters sold a controlling stake in SLK Global Solutions to Coforge for ₹920 crore.

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