Hughes Hubbard & Reed served as US counsel to The Carlyle Group in its acquisition of a majority stake in India-based Newgen KnowledgeWorks Private Limited, a provider of publishing and technical services for publishers in the US, the UK and Europe.
First Carlyle Ventures II, an investment fund advised by The Carlyle Group, invested $32.8 million to acquire a 54.85 percent stake in Newgen. It was the same stake Carlyle once owned before selling it to investors in 2011. The transaction was announced on Dec. 9, 2014.
Carlyle acquired the stake held by Franklin Templeton Private Equity Strategy, Aureos South Asia Fund and ePlanet Capital in Newgen. Carlyle first invested $9.3 million in Newgen in 2004. Seven years later, the fund more than tripled its investment when it sold the stake to the consortium of three funds for $30 million.
"Newgen has built an extremely successful business with strong franchise value," said Shankar Narayanan, managing director of Carlyle India. "We were pleased with Carlyle's prior investment in Newgen and we see the same potential for creating value through our latest investment."
Founded in 1996, Newgen provides outsourced publishing services to many of the world's largest and most prestigious publishers, particularly in the U., the UK and Europe.
Since 2000, Carlyle has invested approximately $1.1 billion of equity in approximately 30 transactions in India as of Sept. 30, 2014.
Ken Lefkowitz and Jillian Kane worked on this matter.