TA Associates, a private equity firm, and Argan Mauritius, have picked up stake in Indian broadband service provider Atria Convergence Technologies, for $500 million.

The incumbent shareholders of ACT, including India Value Fund III, the current majority shareholder of ACT, will be divesting a significant portion of their stake. Argan Mauritius is an Indium V company.

The Bangalore-based ACT Convergence Technologies – utilizing optical fiber and a company-owned last-mile network – serves more than one million retail customers, offering wired broadband and cable TV services in South India, across Telangana, Karnataka, Andhra Pradesh and Tamil Nadu.

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. As per TRAI’s latest report, ACT is the fourth largest wired broadband service provider in India. BSNL is the #1 wired broadband operator in the country.

“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,” said Dhiraj Poddar, co-head of India at TA Associates Advisory.

Bala Malladi, CEO of Atria Convergence Technologies, said: “ACT will increase presence in current markets, and target new cities and regions where we see significant opportunity.”

Baburajan K
[email protected]