Singapore's GIC invests in software consultancy ThoughtWorks

Singapore

SINGAPORE sovereign investor GIC and Abu Dhabi's Mubadala are two new investors in global software consultancy ThoughtWorks, the target company said on Friday.

GIC, Mubadala Investment Company, German tech firm Siemens and Fidelity Management and Research LLC have together put US$720 million into ThoughtWorks, a software development and digital transformation consulting firm set up in 1993.

The capital injection, which ThoughtWorks said comes amid continued investment in growth and international expansion, will be used to buy out other shareholders.

Private equity firm Apax Partners LLP's Apax IX Fund had announced plans in December 2020 to sell a minority stake to an unspecified group of investors by the end of the first quarter in 2021, according to a bourse filing from London-listed Apax Global Alpha Ltd.

The new deal pegs Chicago-based ThoughtWorks' enterprise value at US$4.6 billion, although a spokesperson did not offer a breakdown between debt and equity when asked.

ThoughtWorks also did not give the size of the new investors' interest.

Still, Apax partner Rohan Haldea said in a statement that the firm welcomes ThoughtWorks' latest backers "as additional investors to support the company's growth strategy".

Tim Breen, executive director of technology at Mubadala, said that "ThoughtWorks' long-term growth prospects were key to our investment decision", while GIC did not offer any comments to the press on the deal.

Funds advised by Apax Partners LLP, whose investments include fitness subscription startup ClassPass, first bought ThoughtWorks in 2017 for an undisclosed sum.