Carlyle Takes Significant Minority Stake In Singapore-Based Engineering Services Firm Quest Global

The Carlyle Group Inc CG inked a definitive deal to acquire a significant minority stake in Quest Global for an undisclosed amount.

As part of the deal, the current investors Bain Capital and Advent International will leave, Quest Global will repurchase own shares and Ajit Prabhu, Chairman and CEO of Quest Global, will buy an additional interest in the company.

Singapore-based Quest Global is a global player in engineering, research and development (ER&D) services for the design, product development and operations of complex engineering systems. It currently has a multi-disciplinary team of over 17,500 engineers, across 67 delivery centers and offices, in 17 countries globally.

The transaction completion is subject to the satisfaction of customary regulatory approvals. 

"Looking ahead, our view is that Quest Global is well-poised to benefit from the growing focus on product innovation, digital engineering, embedded systems, increased outsourcing and disruptive technology advancements across industries. We look forward to working closely with Quest Global's management team while leveraging Carlyle's deep sector expertise and global network to help the company expand its global leadership in the ER&D space," said Amit Jain, Managing Director and Head of Carlyle India Advisors. 

This month, Carlyle reported Q2 total segment revenues of $977.9 million, beating the consensus of $809.1 million, and after-tax distributable EPS of $0.88 came above the consensus of $0.65.

As of June 30, 2023, cash, cash equivalents, and corporate treasury investments stood at $914.8 million.

Price Action: CG shares are trading down by 3.2% at $31.86 on the last check Tuesday.