EQT Private Capital Asia sells its remaining 26.7 percent stake in CMS, India’s largest cash management company, through a USD 187 million block trade
Under EQT’s ownership, CMS consolidated its market leadership, achieved productivity gains resulting in EBITDA growth of 3x, expanded margins and instituted best-in-class governance framework.
CMS successfully navigated two crisis periods, namely currency demonetization in India in 2016 and COVID-19 pandemic, emerging even more resilient.
EQT is pleased to announce that BPEA Private Equity Fund VI (“EQT”) has sold its remaining 26.7 percent stake in CMS Info Systems Limited (“CMS” or the “Company”), listed on the Indian stock exchanges, through a USD 187 million block trade.
Headquartered in Mumbai, India, CMS is the country’s largest cash management company, providing ATM cash management, retail cash management, cash-in-transit, ATM managed services, banking automation and AI-based remote monitoring solutions. CMS has over 25,000 employees and associates, servicing more than 150,000 business commerce points across 97 percent of India’s districts.
Under EQT’s ownership, CMS consolidated its market leadership, achieved productivity gains resulting in EBITDA margin expansion, and instituted a best-in-class governance framework. Through a combination of fixed cost optimization, strategic M&A, and new revenue opportunities, the Company successfully navigated two crisis periods, namely currency demonetization in India in 2016 and the COVID-19 pandemic. In addition, it has managed the incoming challenge of new electronic payment systems, emerging more resilient from these events. Since EQT’s investment, the Company has grown its EBITDA by 3x, with an accelerated CAGR of 34 percent over the past two years.
Ashish Agrawal, Partner within EQT Private Capital Asia’s Investment Advisory Team, commented: “CMS continues to benefit from the robust growth in India’s banking sector, supported by the Government's proactive measures to promote financial inclusion. Over the years, CMS has successfully transformed into an integrated banking solutions provider, and we are proud to have been a part of this journey. It has been an absolute pleasure partnering with CEO Mr. Rajiv Kaul and his entire team. We believe CMS is very well positioned under his able leadership and we wish the Company well for its next phase of growth.”
