Partners Group, a global private markets firm, has agreed, on behalf of its clients, to acquire Atria Convergence Technologies, an Indian provider of high-speed fiber-optic broadband, from Argan (Mauritius) Ltd. and TA Associates. Partners Group, which has been a joint investor in ACT since 2016, will acquire a controlling stake in a transaction that values the company at an enterprise value of nearly $1.2 billion.
Headquartered in Bangalore, ACT is a multi-service operator offering a package of internet, TV, data, and other broadband services.
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, commented, “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.”
Vageesh Gupta, member of management, Partners Group, added, “Data consumption in India is booming yet our thematic research shows the wired broadband market is supply constrained with the country continuing to have amongst the lowest fiber-to-the-home penetration in the world. We are delighted that Bala and his team have chosen to partner with us as we work together to implement a value creation plan that will focus on expanding ACT’s share in new geographies and customer segments.”
Partners Group’s other investments in India include Vishal Mega Mart, franchisor of the Vishal Mega Mart brand and wholesale supplier to Vishal-branded hypermarket stores; Aavas Financiers, provider of housing loans to low and middle income customers; and Ecom Express, a provider of logistics solutions to the Indian e-commerce industry. 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, an Italian fixed wireless access broadband provider.