Argan to divest stakes in ACT telecom
Hyderabad Argan (Mauritius) Limited and TA Associates a global growth private equity firm have announced that they have signed agreements with partners group to divest stakes in Atria Convergence Technologies Limited (ACT). Argan will exit its entire shareholding in ACT, while TA will partially divest its shareholding. The sale value is nearly $1.2 billion. The transaction was exclusively advised by UBS.
In June 2008, 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 ("Indium V") investing through Argan and TA acquired a controlling stake in ACT from True North Fund III and other sellers.
ACT headquartered in Bengaluru with more than 7,000 employees 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.
Pramod Kabra, Argan's nominee director on the ACT Board, said, "We have witnessed ACT evolve exponentially during our partnership of nearly 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 three 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."
Dhiraj Poddar, Managing Director, TA and director on the ACT Board, said, "Since our investment in 2016, we have been fortunate to see ACT grow significantly in size and areas of operations to more than 19 cities across the country. Over this period, the company has maintained a sharp focus on delivering a high speed, reliable home broadband product to its customers at par or better than others in the industry."
