Partners Group to Take Lead Control in Indian Wired Broadband Provider Atria Convergence Technologies

Posted on 08/14/2021


Partners Group AG, on behalf of its clients, signed a deal to buy Atria Convergence Technologies (ACT), one of India’s largest providers of high-speed fiber-optic broadband, from Argan (Mauritius) Limited 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 ATC at an enterprise value of nearly US$ 1.2 billion. Partners Group will work closely with ACT management and TA Associates, which will continue to hold a minority stake, on a value creation plan to support ATC’s ongoing growth and contribution to the Digital India mission. Argan (Mauritius) Limited is an entity advised by Indian private equity firm True North. Argan will exit its entire shareholding in ACT. The transaction is subject to customary closing conditions, including clearance by the relevant merger control authorities.

Headquartered in Bangalore with over 7,000 employees, ACT is a multi-service operator offering a package of internet, TV, data, and other broadband services. ATC serves around 2 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 1 Gbps.

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.

The transaction was advised by UBS Group AG.

Background
In June 2008, True North Fund III acquired a controlling stake in ACT and brought in ATC’s current management team. In 2016, a consortium of investors led by Indium V (Mauritius) Holdings Ltd (Indium V) investing through Argan and TA acquired a controlling stake in ACT from True North Fund III and other sellers. True North is an advisor to Global Opportunity Advisors (Mauritius) Ltd, the investment manager of Indium V. Argan is a Mauritius registered company in which a consortium of global investors led by Indium V have invested to acquire a majority stake in ACT.

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