wordpress blog stats
Connect with us

Hi, what are you looking for?

TA Associates and IVF Advisors to invest $500M in ACT Broadband

ACT

Private equity firms TA Associates and India Value Fund Adviors (IVFA) will invest $500 million in broadband provider Atria Convergence Technologies (ACT), reports VCCircle. The report adds that the PE firms will now acquire 95% of the company following the deal.

Naveen A. Wadhera, co-head of Asia at TA Associates Asia Pacific Ltd, andDhiraj Poddar, co-head of India at TA Associates Advisory Pvt. Ltd, will join ACT’s board after the transaction is completed. It’s worth noting that earlier this month, IVFA received FIPB approval to acquire up to 100% stake in ACT. IVF’s proposal had earlier been deferred by FIPB, in April and January this year. Note that this stake acquisition pertains only to ACT’s broadband business, and the shareholding of ACT’s cable TV business will remain unaffected.

Note that IVFA currently holds 70% of ACT through a fund called “India Value Fund III” and it will be divesting a significant portion of its shareholding. IVFA is reinvesting in ACT through its new fund.

ACT had raised $23 million of debt financing from Olympus Capital Asia Credit (OCA Credit) and Kilimanjaro Credit Fund, in February last year. In June 2014, ACT had also acquired an additional 20% stake in Hyderabad-based ISP Beam Telecom for an undisclosed amount, thereby increasing its stake in the company to 80%. ACT  had rebranded its broadband brand ACT Broadband as ACT Fibernet following its aqcusition of Beam Telecom and would provide 100 Mbps for retail use and up to 250 Mbps for commercial usage as part of its rebranding plan.

ACT’s reach

Advertisement. Scroll to continue reading.

ACT claims to have a customer base of close to 700,000 in the country (as of February 2015). The company also claims to be  largest wired-broadband provider in Hyderabad with 450,000  connections and says it has 140,000 connections in Bangalore, commanding a market share of 25%.

ACT’s plans to expand its broadband business will get a push with the new funds coming in. In February this year, the company had said that it was planning to roll out broadband services across the country and had earmarked Rs 100 crore investments for each centre. ACT is currently present in Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, and recently began operations in Visakhapatnam. They’ll be launching broadband services in Coimbatore shortly.

Competition

BSNL is currently the largest player in wired connections segment with 9.98 million broadband connections as per the TRAI numbers at the end of February. This is followed by Bharti Airtel with 1.43 million connections and MTNL with 1.14 million connections. ACT ranks fourth with 0.65 million connections while YOU Broadband is ranked fifth with 0.44 million connections.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ