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Argan (Mauritius) Limited and TA Associates announced on August 13 that they have signed definitive agreements with Partners Group to divest stakes in Atria Convergence Technologies Limited.
Argan will exit its entire shareholding in ACT, while TA will partially divest its shareholding, a press release noted.
“The sale values ACT at an Enterprise Value of nearly USD 1.2 billion. The transaction was exclusively advised by UBS,” it added.
In June 2008, domestic private equity firm True North Fund III acquired a controlling stake in ACT and brought in the company’s current management team. In 2016, a consortium of investors led by Indium V Mauritius Holdings Ltd investing through Argan and TA acquired a controlling stake in ACT from True North Fund III and other sellers.
Pramod Kabra, Argan’s nominee director on the ACT Board, said the company has evolved exponentially in partnership with it over the last 15 years.
“We are immensely proud of the company’s sustained operational excellence and customer-centricity, which allowed it to become a household name for nearly 3 million homes. In addition, ACT’s management team has consistently exhibited sharp financial acumen, with a hands-on approach to strategic initiatives to navigate competitive market conditions, thereby holding a strong market position over the years,” he said.
TA Managing Director Dhiraj Poddar said ACT has grown significantly in size “since our investment in 2016”.
“We believe ACT will continue to benefit from the tailwinds of rising data consumption and are excited to continue our partnership with the management team in the next phase of the Company’s journey alongside Partners Group,” added Poddar, who is also a director on the ACT Board.
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Headquartered in Bengaluru with more than 7,000 employees, ACT is a leading multi-service operator offering a package of internet, TV, data, and other broadband services. The company serves nearly two million wired broadband subscribers across 19 cities in India and has one of the largest fiber networks in the country, capable of delivering connection speed of up to 1Gbps.
ACT has high customer retention rates and provides reliable broadband, strong uptime, and quality customer service. The company is well-positioned to benefit from rapidly rising data consumption in India, accelerated by new working and learning from home trends since the COVID-19 pandemic.
“Today, ACT is India’s fourth largest wired broadband service provider with revenues having grown at a CAGR of 40% since 2008, ” ACT Chief Executive Officer Bala Malladi said.
“This partnership has helped to unlock our full potential and lead us on the path to success. We sincerely thank our shareholders for their confidence and faith in us, and we look forward to our next chapter of growth with Partners Group and TA,” Malladi added.
