Ramnath’s Multiples bets $200 million on QBurst

Private equity fund Multiples Alternate Asset Management on Thursday said it signed definitive agreements to acquire a controlling stake in global digital product engineering platform QBurst.

The deal is valued at about $200 million, making it Multiples’ largest investment in the technology services sector so far.

Founded in 2004, QBurst offers a range of digital services, including product development, data analytics, cloud solutions, and artificial intelligence (AI)-driven technologies.

The company operates across North America, Japan, the Middle East, Europe, and India, and has more than 3,000 employees.

“QBurst, with its remarkable journey powered by cutting-edge engineering, has carved a distinctive position in the global market. Our partnership will drive transformational success for the company, backed by exceptional talent addition, increased investments in emerging technologies, and strategic acquisitions,” Renuka Ramnath, founder, managing director and chief executive officer of Multiples, said.

Despite Multiples taking a controlling stake, QBurst’s founders—Prathapan Sethu, Binu Dasappan, and Ansar Shihabudeen—will continue to hold “a meaningful stake” in the company, a statement said.

“QBurst is a differentiated tech services platform with end-to-end product development capabilities and a customer-centric technical solutions approach. …This investment demonstrates Multiples’ continued focus on tech-driven businesses … enterprise tech is a priority sector for us and we intend to deploy up to $2 bn in the space over 5 years.,” Manish Gaur, managing director at Multiples, said in a LinkedIn post.

The transaction is subject to regulatory approvals.

BDA Partners served as the exclusive financial advisor, with Shardul Amarchand Mangaldas & Co. and EY providing legal and tax advisory services.