TA Associates, a private equity firm may invest Rs 1,280-crore or $200-million in one of the country's largest internet service providers, Atria Convergence Technologies (ACT), headquartered in Bangalore.
ACT provides broadband and cable TV access and has approximately one million subscribers across the southern states of Karnataka, Tamil Nadu, Andhra and Telangana. It is adding more than 20,000 new subscribers every month and has built a network of seven lakh subscribers, with a 25% share of the market in Bangalore. High-speed broadband is a lucrative business for most cable players with significantly higher average revenue per user (ARPU) levels.
TA Associates has emerged as a frontrunner to lead a consortium of global investors, which may include GIC of Singapore and Canadian Pension Plan Investment Board, to buy majority shares in Atria.
Existing investor India Value Fund Advisors (IVFA) holds majority shares after having financed the company's fibre optic-driven triple-play services — broadband, television and fixed-line voice. IVFA is expected to monetize its seven-year-old investment selling shares to TA Associates and others.
IVFA managing partner Vishal Nevatia said Atria was in discussions with multiple suitors and no deal has been concluded yet.