The Goldman Sachs Merchant Banking Division and the Everstone Group have signed a definitive agreement to acquire a significant stake in Infostretch.
The investment will help drive growth as the California-based company expands its service offerings for enterprise and digital-native companies.
The demand for digital product engineering services has been on the rise. According to research firm Zinnov, the digital engineering services market is expected to hit $687 billion by 2023. Infostretch says its growth has outpaced the digital engineering service sector too.
With the Goldman Sachs Merchant Banking Division and the Everstone Group on board, Infostretch looks to leverage the firms’ relationships and merger and acquisition experience to grow its global business. In terms of mergers and acquisitions, Infostretch says it plans to strengthen its digital stack capabilities.
“We’re very pleased to partner with Goldman Sachs and Everstone Group to continue our aggressive growth and expansion,” said Rutesh Shah, CEO and co-founder of Infostretch.
Shah continued: “The expertise and reputation we have built over the last 15 years has put us in the position to advance the digital initiatives of some of the world's leading companies and brands. This investment will enable us to build on those strengths and take advantage of the growing need for more innovative digital solutions in verticals like healthcare, financial services and technology.”
Harsh Nanda, a managing director in the Goldman Sachs Merchant Banking Division, added: “Infostretch has built an impressive brand and list of loyal clients in healthcare, financial services and high tech. Their global presence and ability to apply the latest capabilities in areas like AI and analytics with best practices in Agile and DevOps set them apart in the digital engineering space.”
Avnish Mehra, senior managing director at Everstone Group says digital will be the core differentiator for businesses over the next 5-10 years, adding that, “With its expertise in emerging technologies and the ability to incorporate intelligent automation across the development lifecycle, we think Infostretch is well-positioned to be one of the premier digital engineering service providers in the market.”
The financial terms related to the acquisition haven’t been disclosed.
