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TA invests in India's Atria, IVFA rolls over stake

  • Holden Mann
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TA Associates will join India Value Fund Advisors (IVFA) to buy about 95% of Indian broadband service provider Atria Convergence Technologies (ACT). IVFA's India Value Fund III, ACT's current majority shareholder, will exit most of its stake and roll it over into the firm's latest fund.

The deal will be completed later this year, subject to regulatory approval. According to a statement, IVFA's investment will be managed through Argan (Mauritius); IVFA controls Argan through its Indium V fund, which reached a first close of $500 million earlier this year and has a hard cap of $700 million.

Srikrishna Dwaram, a partner at IVFA, said that Indium V will hold a lower stake in ACT than IVF III, and that IVF III will retain a portion of its shares. Dhiraj Poddar, co-head of India at TA, and Naveen Wadhera, the firm's co-head of Asia, will join ACT's board upon the closing of the transaction.

ACT, headquartered in Bangalore, is one of India's largest broadband service providers. It serves more than one million customers across four states in south India. IVFA made its first investment in the company in 2008.

TA, which is based in the US, has made a number of investments in India's tech sector, including a commitment in January of INR2-3 billion ($32-48 million) to travel booking software provider RateGain. The firm launched its 12th global private equity fund in February, with a target of $4 billion.

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