Swiss private equity firm Partners Group on Saturday said it will acquire a controlling stake on behalf of its client in broadband service provider Atria Convergence Technologies (ACT).
The stake will be bought at an enterprise value of nearly $1.2 billion (around Rs 8,900 crore), Partners Group said in a statement.
Partners Group, a joint investor in ACT since 2016, will buy the stake from Argan (Mauritius) and TA Associates.
With over 7,000 employees, Bangalore-based ACT is a multi-service operator offering a package of internet, TV, data and other broadband services. ACT serves around 2 million wired broadband subscribers across 19 cities in India and has one of the largest optical fibre networks in the country, capable of delivering connection speed of up to 1 Gbps, the statement said.
“ACT is on the frontline of digitisation in India. The company is an excellent opportunity for us to support the transformation of a growing business through expansion in new markets and development of new product offerings.
“As existing investors, we have followed ACT’s journey for several years and have been impressed with Bala (ACT CEO) and his team’s strategic vision,” Partners Group managing director Manas Tandon said.
Partners Group will work closely with ACT management and TA Associates, which will continue to hold a minority stake.
“Partners Group has been an integral part of the company’s growth journey for several years and is a great believer and supporter of our core values. The firm’s experience working with global technology companies and its expertise in supporting multi-dimensional growth will be very valuable,” ACT chief executive officer Bala Malladi said.
