Partners Group, a leading global private markets firm, has announced that it has agreed to acquire 75% controlling stake in fiber-optic broadband provider Atria Convergence Technologies (“ACT” or “the Company”) in a transaction that values the company at an enterprise value of nearly US$ 1.2 billion (Rs.9000 crore). The deal is said to be valued at about US$ 900 million (Rs. 6750 crore).
ACT serves around 2 million wired broadband subscribers across 19 cities in India and has over 7,000 employees. Partners Group said that it will work closely with ACT management and TA Associates, which will continue to hold a minority stake, on a value creation plan to support the company’s ongoing growth and contribution to the Digital India mission.
ACT is Partners Group’s third investment in the telecom space this year after Unity Digital, a telecom tower platform in the Philippines, and Eolo, Italy’s leading fixed wireless access broadband provider.
The transaction is subject to customary closing conditions, including clearance by the relevant merger control authorities.
Commenting on the deal, Manas Tandon, Managing Director, Private Equity, Partners Group, said:
ACT is on the frontline of digitization in India, providing fast, reliable broadband to millions of homes in the country. The Company is an excellent opportunity for us to support the transformation of a growing business through expansion into 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 and his team’s strategic vision, and their commitment to customer satisfaction, which converges with our focus on operational excellence.
Bala Malladi, Chief Executive Officer, Atria Convergence Technologies, said:
ACT has been a pioneer in the fixed broadband industry with its relentless focus on creating a culture of technological excellence, as well as employee and customer centricity. The company has been at the forefront of facilitating working from home and learning from home during the pandemic and believes in supporting the Digital India mission significantly. 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.