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  • Writer's pictureShernel Thielman

Carlyle Group Acquires Minority Stake in Quest Global Services, Valuing the Firm at $2 Billion

U.S. private equity firm Carlyle Group has recently reached an agreement to purchase a minority stake in Quest Global Services, an engineering outsourcing firm headquartered in Singapore. The deal, which values Quest Global at approximately $2 billion, represents a significant move in the engineering and research sector. The transaction was officially announced by Carlyle today.

The acquisition is expected to be financed through equity from Carlyle's Asian funds, along with funding from various banks. However, specific financial details of the deal have not been disclosed. Quest Global's existing investors, Bain Capital and Advent International, are set to exit the company as part of the transaction. The firm will also undertake a repurchase of its own shares.

A noteworthy aspect of this deal is that Ajit Prabhu, who serves as the Chairman and CEO of Quest Global, will acquire an additional stake in the company. This indicates his confidence in the company's growth prospects and its alignment with Carlyle's strategic vision.

Quest Global, established over a quarter of a century ago, specializes in providing engineering, research, and development services for complex engineering systems. With a strong global presence, the company currently boasts more than 17,500 engineers across 67 delivery centers and offices situated in 17 countries. This broad international footprint and specialization in engineering solutions have contributed to the firm's valuation.

Interestingly, this isn't the first time Quest Global has attracted attention from major investment players. In 2016, Bain Capital, Advent International, and Singapore's sovereign wealth fund, GIC Pte Ltd, jointly acquired a minority stake in the company for $350 million. GIC's participation in the company was also part of its previous investment.

As part of this current transaction, GIC is exiting its investment in Quest Global, marking a significant change in the company's investor landscape. While the financial specifics remain undisclosed, this deal underscores the attractiveness of the engineering outsourcing sector, as well as the confidence that major investment firms like Carlyle place in the potential for growth within such companies. Investment Disclaimer: The information provided here is intended solely for general informational purposes and should not be considered as investment advice, endorsement, or recommendation. Investing in financial markets, including equities, involves inherent risks and uncertainties. Past performance is not indicative of future results. Any decision to invest or trade should be based on thorough research, independent analysis, and consideration of your risk tolerance. It's advisable to consult a qualified financial advisor or professional before making any investment decisions. The provided content does not constitute financial, legal, or tax advice. The accuracy, completeness, or reliability of the information is not guaranteed, and no liability is assumed for any loss or damage arising from reliance on it.

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