The big data analytics company Mu Sigma is in talks with the private equity player TPG Capital to sell a large stake sale in the firm. According to the sources, this acquisition of stake may result in a potential sale of the venture and this will value the company at around $1.2 billion.
However, there has been no formal agreement regarding the same, the sources say the ongoing talks may not lead to a definitive deal and a complete exit for present shareholders is not being ruled out.
“TPG and Mu Sigma are trying to explore if a deal is workable. The discussions have been substantial but contours of the transaction are yet to evolve,” stated a source familiar to the matter.
He also told that the two companies have not involved any investment banks yet. The data analytics company was founded by Dhiraj Rajaram, General Atlantic Partners and Sequoia Capital who have a considerable shareholding in the company, which helps large international corporations with data-driven decision making.
Since the last year, Mu Sigma has been able to boost up its revenues, which had been vigorously hit in 2016. Big data companies have been witnessing a huge growth in the recent years and have gained scale that has been a challenge for many. This acquisition by TPG could bolster the growth of Mu Sigma as it could gain access to the former’s portfolio companies internationally.
In the year 2013, a funding led by Mastercard valued Mu Sigma at $1.5 billion. This gave the company almost 14 times multiple on revenue. But valuation multiples have reduced because of various reasons including its internal woes, the resignation of Subramanian and a string of top executives, who left subsequently.