TA, Argan to invest $500 mln in Atria Convergence

TA Associates and Argan have agreed to invest $500 million in Atria Convergence Technologies Pvt. Ltd. Atria shareholders, including The India Value Fund III, will sell a portion of their holdings. Bangalore, India-based Atria provides high-speed broadband services in India. Argan is controlled by Indium V.


BOSTON & MUMBAI, India–(BUSINESS WIRE)–TA Associates, a leading global growth private equity firm, and Argan (Mauritius), a company controlled by Indium V, today announced that they have signed a definitive agreement to invest approximately USD 500 million to acquire shares of Atria Convergence Technologies Pvt. Ltd. (ACT), a leading provider of high-speed broadband services in India. The transaction is expected to close subject to customary closing conditions, including the receipt of required regulatory approvals. As part of this transaction, the incumbent shareholders of ACT, including India Value Fund III (sole trustee of IVF Trustee Company Private Limited), the current majority shareholder of ACT, will be divesting a significant portion of their shareholdings. India Value Fund Advisors (IVFA), one of India’s leading private equity firms, is an advisor to Indium V and a manager of India Value Fund III.


ACT and its group companies serve more than one million retail customers, offering wired broadband and cable TV services in South India, across Telangana, Karnataka, Andhra Pradesh and Tamil Nadu. Utilizing the latest in optical fiber technology and a company-owned last-mile network, ACT provides high-speed connectivity in India. ACT is headquartered in Bangalore, India.

“We believe that in the coming years, India will see a significant increase in wired broadband penetration,” said Dhiraj Poddar, Co-Head of India at TA Associates Advisory Pvt. Ltd., who will join ACT’s Board of Directors at the close of the investment. “ACT has implemented an effective and service-driven strategy using fiber-to-the-home technology to target and deeply penetrate select markets. The company has rapidly acquired broadband customers and established a strong brand across South India. With a proven record of execution, an attractive business model, and an experienced and highly capable management team, we expect continued growth for ACT.”

“We welcome TA Associates’ strategic and financial support, and are very pleased to partner with the firm. We are also happy that this transaction maintains our continued engagement with IVFA, which has played an instrumental role in envisioning and building ACT’s business,” said Bala Malladi, CEO, Atria Convergence Technologies. “Broadband is becoming a necessity for many households in India as users seek always-on, reliable and fast connectivity. We will leverage our relationship with TA and IVFA as we continue to thoughtfully grow our business, increase ACT’s presence in our current markets, and target new cities and regions where we see significant opportunity.”

“With TA Associates and Argan coming on board, ACT is positioned to leverage its deep understanding of the growing demand for high-speed broadband by aggressively building out access and service for the customer,” said Sunder Raju, Managing Director and the original founder of Atria Convergence Technologies.

According to the Telecom Regulatory Authority of India (TRAI), of India’s 250 million households, only approximately 15 million, or six percent, have a wired broadband connection.

“The number of wired broadband connections in India is still very low, especially compared with growing economies such as China, and most of those connections are via slower, low-quality DSL networks,” said Naveen A. Wadhera, Co-Head of Asia at TA Associates Asia Pacific Ltd., who will also join ACT’s Board of Directors at the close of the investment. “With high-speed broadband connectivity expected to increase meaningfully in India over the next five years, and with ACT’s history of building market share and meeting customers’ needs, we see significant opportunities for the company.”

“Our long and fulfilling engagement with ACT since early 2008 has been one of our most professionally satisfying experiences,” said Vishal Nevatia, Managing Partner, India Value Fund Advisors. “We believe that ACT, backed by its strong management team and superior technology architecture, has the potential to become one of the most admired Internet Service Providers in India, providing its customers with world-class wired broadband products.”

TA Associates Advisory Pvt. Ltd. is providing advisory services on the investment.

About Atria Convergence Technologies
Atria Convergence Technologies (ACT) is a state-of-the-art broadband information, entertainment and communications provider. ACT has been a pioneer in developing the ultra speed and high bandwidth broadband market in South India under its flagship brand, “ACT Fibernet”. As per TRAI’s latest report, ACT is the fourth largest wired broadband service provider in India, with industry-leading growth rates. The company is headquartered in Bangalore. For more information, please visit http://www.acttv.in.

About TA Associates
TA Associates is one of the largest and most experienced global growth private equity firms. The firm has invested in more than 450 companies around the world and has raised $18 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.

About IVFA
India Value Fund Advisors (IVFA) was established in 1999 with a focus on investing in and transforming mid-sized profitable businesses into world-class, industry-leading businesses, built on a strong foundation of IVFA values. Steered since its inception by Vishal Nevatia, IVFA has over the years built deep knowledge and skills in the Indian markets and has successfully launched five separate investment funds with a combined corpus of USD 2 billion. For more information, please visit www.ivfa.com.