Bain Capital, Cinven circling Indra’s Minsait in potential €1.6bn-1.8bn deal

Private equity funds Bain Capital and Cinven are considering making an offer for Spanish defence company Indra’s tech unit Minsait, news website El Confidencial reported on Tuesday, citing unidentified sources close to the process.

Minsait, which represents about half of Indra’s business, would be worth 1.6bn to 1.8bn euros ($1.72bn -$1.94bn), El Confidencial said, adding Bain would make an offer for at least a 49% stake.

Indra’s CEO Marc Murtra recently said the company was considering all options regarding Minsait to raise cash to finance its growth, El Confidencial said.

A spokesperson for Bain declined to comment. Cinven and Indra did not respond to requests for comment.

Indra’s main shareholder is Spanish state holding company SEPI with a 25.2% stake, data from LSEG shows.

Indra’s strategic relevance has increased since Russia’s invasion of Ukraine as Spain has promised to boost its defence spending as required by NATO in the coming years.

Minsait is the technology and consulting arm of Indra, a Spanish multinational technology and consulting corporation. It provides a wide range of IT services, including cloud computing, cybersecurity, digital transformation, and infrastructure management. Minsait has a strong presence in Spain, Latin America, and Europe, and it is one of the leading IT providers in the world.

Indra’s decision to consider selling Minsait comes as the company is facing increasing competition from other IT providers, such as Accenture and IBM. Indra is also looking to raise cash in order to invest in its core business of defense and aerospace.

A sale of Minsait would be a major strategic move for Indra. It would allow the company to focus on its core businesses and also generate significant cash proceeds. However, it would also mean that Indra would be losing one of its most important assets.

Source: Reuters

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