QuEST Global acquires NeST Software

KOCHI: QuEST Global Engineering, a diversified engineering solutions company, has acquired an 84% stake in NeST Software, the engineering and embedded services business of Kochi-based NeST Group, for slightly more than Rs 500 crore. NeST Software is engaged in product engineering, value engineering and sustenance services.

For the Warburg Pincusbacked QuEST Global Engineering, the acquisition is part of its diversification strategy as it will strengthen the engineering service offering to QuEST's customers in terms of engineering software, embedded systems, mechanical systems and structures.

It will enhance QuEST's capabilities in energy and transportation and add other verticals to its portfolio. It will also help the company to gain a stronger presence in markets like US, Western Europe and Japan.

The acquisition will add 1,900 employees, taking Quest's total strength to 6,850. About 4,500 of these employees are in India, 1,350 in the US and 1,000 in Europe. Most of Quest's India em ployees are in Bangalore and Belgaum, and that of NeST in Thiruvanan thapuram.

QuEST said its revenue in the year ended March 2014 was Rs 1,500 crore and expects that to grow organically - excluding NeST - to Rs 1,740 crore this year. The sale will see NeST, a $200-million enterprise founded by Silicon Valley entrepreneur Jawed Hasan, stay focused on hardware, manufacturing and R&D.