Waterland Buys Indra Consulting Arm Minsait

Dutch private equity firm Waterland Private Equity is reportedly in the final stages of acquiring Minsait Business Consulting (MBC), the strategic consulting arm of Spanish technology group Indra. This strategic divestiture by Indra is aimed at bolstering its financial capacity for expansion within its defense sector operations. The transaction, valued in the range of €125 million to €150 million, signifies a significant move for both parties in the competitive consulting and private equity arenas.

Sources close to the deal indicate that Waterland has already secured the necessary financing for the acquisition. This move aligns with Waterland's established strategy of acquiring companies in fragmented markets and subsequently pursuing aggressive consolidation. The firm, which entered the Spanish market in 2021 under the leadership of David Torralba, currently manages Auren, another prominent professional services firm in Spain, though it is understood that MBC will not be integrated with Auren.

Minsait Business Consulting, with roots tracing back to Europraxis, specializes in strategic advisory and business transformation services. The division boasts a global presence with over 2,100 professionals operating across more than ten countries. In the fiscal year preceding the sale, MBC generated approximately €200 million in revenue and an EBITDA close to €20 million, presenting a substantial asset for its new owner.

This potential acquisition follows Indra's recent strategic maneuvers, including the sale of its Business Process Outsourcing (BPO) division to the Basque technology firm Teknei for approximately €100 million. The company has also been exploring the divestiture of its payments subsidiary, now known as Nuek, though previous negotiations with Pollen Street Capital and Apis Partners did not culminate in a finalized agreement.

The negotiations between Indra and Waterland commenced early in the year, following an initial market sounding for the consulting unit initiated in late 2023. This strategic pruning of non-core assets allows Indra to sharpen its focus on its core technology and defense businesses, where significant growth opportunities are anticipated. The broader IT services and consulting market in Europe has seen robust activity, with private equity firms actively seeking targets that offer strong recurring revenue streams and potential for operational improvements.

The divestment of Minsait Business Consulting by Indra underscores a trend among larger technology conglomerates to streamline operations and concentrate on high-growth, strategic areas. For Waterland, the acquisition of MBC represents a significant addition to its portfolio, leveraging its expertise in consolidating and scaling professional services businesses. The deal is expected to close in the near future, pending final regulatory approvals.