European private equity firm CVC Capital Partners is set to acquire a majority stake in Hyderabad-based ValueLabs at a valuation of USD 1-1.2 billion. Promoters will retain a minority shareholding while the existing management continues to lead operations, marking a major milestone in India’s technology services sector.
CVC Capital Partners has signed an exclusivity agreement to acquire a controlling stake in ValueLabs, a global technology services and AI solutions company headquartered in Hyderabad. Founded in 1997 by Arjun Rao Donakanti, ValueLabs has built a strong reputation in IT services, digital transformation, and AI-driven solutions.
The deal, valued between USD 1-1.2 billion, will see promoters retain 15-20 percent ownership, ensuring continuity and alignment with the new investor. The existing management team will continue to oversee operations, while CVC brings in capital and global expertise to accelerate growth.
Industry analysts view the acquisition as a strategic move that highlights rising global interest in Indian technology and AI firms. The investment is expected to strengthen ValueLabs’ expansion plans and enhance competitiveness in international markets.
Key Highlights
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CVC Capital Partners to acquire majority stake in ValueLabs
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Deal valued at USD 1-1.2 billion
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Promoters to retain 15-20 percent ownership
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Management team to continue leading operations
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Focus on scaling AI and digital transformation services globally
Final Takeaway
The acquisition reflects the growing appetite of global investors for Indian tech firms. With CVC’s backing, ValueLabs is poised to expand its global footprint, diversify service offerings, and reinforce India’s position as a hub for technology and AI innovation.
Sources: The Economic Times, CorpDev.org, TradeKaizen