Private equity firm Bridgepoint to buy Israel software testing company Qualitest

Private equity firm Bridgepoint has entered a deal to acquire a majority stake in Qualitest, an Israeli firm that does software testing and quality assurance, from Marlin Equity Partners, the companies said on Wednesday.

The financial terms of the deal were not disclosed, but Reuters estimated the deal at around $420 million, citing a source close to the matter.

Founded in 1997, Qualitest uses artificial intelligence-powered engineering and testing products to measure the quality of software within a variety of industries and technology platforms.

The firm has offices in the US, the UK, Israel, Romania, and India, and focuses on a wide range of testing solutions for customers in such fields as technology, financial services, retail, telecom, healthcare, insurance, aerospace, media and utilities, the statement said.

“Qualitest’s expertise lies in mitigating the business risks associated with software releases,” the statement said.

The funds from the investment will allow Qualitest to grow market share through global acquisitions, strengthen its product development and recruit more workers, the statement said.

Bridgepoint’s “long-term capital commitment provides us with the platform to accelerate the next stage of our development and execute our global acquisition strategy,” said Norm Merritt, the CEO of Qualitest, in the statement.

Bridgepoint has over $20 billion of assets under management and typically focuses on acquiring “well-managed companies in attractive sectors,” helping them expand through investments or acquisitions. Bridgepoint has offices in Amsterdam, Frankfurt, Istanbul, London, Luxemburg, Madrid, New York, Paris, San Francisco, Shanghai, Stockholm and Warsaw.

Marlin Equity Partners is an investment firm with over $6.7 billion of capital under management