CVC makes partial exit as Arteria raises $193m in Japan IPO

The company sold 17.5 million shares – all of them held by CVC – for JPY1,250 apiece, according to a filing. The private equity firm acquired a 50% stake in Arteria for $150 million in 2014. Following the IPO, it holds a 15% position, which was worth JPY9.38 billion ($82.6 million) based on the offering price. The stock ended its first day of trading on December 12 down slightly at JPY1,200.

CVC had joint control of Arteria alongside Marubeni Corporation, which was previously the majority owner. The Japanese conglomerate still holds a 50% interest in the business.

Arteria originated in 1997 as Global Access and became Marubeni Access Solutions on merging with Vectant in 2010. Another merger, this time with fiber optic internet service provider Ucom in 2010, led to it being renamed Arteria. When CVC invested, the company was one of just four players in Japan with a nationwide fiber network infrastructure.

Arteria provides internet connectivity, leased circuits, virtual private networks, data centers, cloud access, and telephone services to corporate customers. It also offers internet access services to condominiums. Revenue for the 12 months ended March 2018 reached JPY47.6 billion, up from JPY41.4 billion a year earlier. Over the same period, net profit rose from JPY4.2 billion to JPY4.6 billion.

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• Topics
• North Asia
• Technology
• IPO
• Japan
• CVC Capital Partners
• IPO