Warburg Pincus in talks to sell stake in IT firm Encora

Warburg Pincus is in early-stage negotiations to sell a controlling stake in Encora, a US-headquartered Indian-origin IT services firm it owns, taking advantage of a deal spree in the sector in recent months, people in the know said.

The private equity firm, which owns 80% of the company, has reached out to funds including Blackstone, Baring Private Equity Asia, KKR, Carlyle, Bain Capital as well as Silverlake Partners to sell its entire stake in a deal valuing the firm at around $1.5 billion (Rs 11,260 crore), they said.

JP Morgan has been mandated to find a buyer. Warburg had acquired Encora (formerly Indecomm Digital) in 2019 for $200 million from Capital Square Partners and its promoters.

A digital engineering services provider, Arizona-based Encora employs more than 5,500 engineers in 20 offices across the US, Mexico, Central & South America, India and Asia-Pacific.

Mails sent to Encora, Warburg Pincus and Bain Capital did not elicit any responses till press time Tuesday. Spokespeople for Baring Private Equity Asia, Blackstone, KKR, Silver Lake and Carlyle declined to comment. Userwalls