New York-based private equity firm Warburg Pincus will invest $360 million in Tata Technologies for a 43 percent stake, of which 30 percent will be acquired from Tata Motors, the parent company, and 13 percent from Tata Capital.
Tata Technologies provides outsourced design, research and development services to the automotive, aerospace, and industrial machinery industries, and has about 8,500 employees in 23 countries. Warren Harris CEO of Tata Technologies said, “As the engineering services outsourcing market has matured from cost arbitrage and staff augmentation to increasingly high-end, strategic work, Tata Technologies has been there leading the charge.”
Vishal Mahadevia, managing director and co-head of Warburg Pincus India, said that the PE firm will leverage its global network and prior experience in the engineering services sector to help Tata Technologies grow both organically and through acquisitions, reports Bloomberg.
