Chennai-based Indium to pick up majority stake in Experion

Chennai-headquartered Indium Software announced a majority stake buyout in product engineering services firm Experion on Wednesday. While the financial details of the acquisition were not disclosed, the company spokesperson said that the deal is expected to be completed in the next three years or more. 

The EQT-backed digital engineering firm, which has offices in India and the US, will establish a foothold in newer regions such as the UK, Europe, Australia, and Japan through this deal. In India, Indium will expand to Kochi and Thiruvananthapuram where Experion has offices. 

Experion will add end-to-end product engineering expertise, complementing Indium’s existing capabilities in advanced analytics, artificial intelligence (AI), and quality engineering. The Experion deal will help Indium expand its existing portfolio of banking, financial services and insurance (BFSI), retail, and healthcare to include manufacturing, automotive, and transportation clients. The company plans to retain top leadership; additionally, the workforce will grow from 3,400 to 5,000. 

“We have set a revenue target of $150 million for the next financial year. Experion will add about 30% to this figure,” said Ram Sukumar, CEO and Co-founder, Indium told TechCircle. 

Experion has grown at a CAGR of 30% over the past four years. “We (Indium) have had a good CAGR of about 40%-45% over the last five years. The two good growth companies coming together will offer a compelling platform for our customers and employees,” Sukumar added. 

To be sure, in 2023 Hong Kong-headquartered BPEA EQT Mid-Market Growth Fund acquired a majority stake in Indium. “The equity backing has been excellent, and as we approach 10 months into this journey, it's been a collaborative and busy time. We’ve been particularly active on the M&A front, evaluating several assets before moving forward with key deals like Experion. We are focused on M&A, expanding revenue through new client acquisitions, growing our existing customer base, and strengthening our leadership team,” said Sukumar. Currently, Indium is deliberating on similar M&A deals in the product and platform capabilities and data space.

“The benefits of some of these investments will translate into accelerated growth and revenue and profits in the next two to three years. It has been a good year and we grew reasonably well despite softer market conditions.”