Partners Group buys India broadband provider for $1.2b

Headquartered in Bangalore, Atria is described as a leading multi-service operator offering a package of internet, TV, data, and other broadband services. It serves around two million wired broadband subscribers across 19 cities and claims one of the largest fiber networks in the country.

True North first invested in Atria in 2008 through its India Value Fund III vehicle. The firm rolled over its stake into a newer fund in 2015, with TA simultaneously committing an undisclosed amount.

In 2018, the company filed for a domestic IPO, but this failed to come to fruition. The plan was to raise up to INR8 billion ($123 million) in new equity – to support the expansion of underground network infrastructure and to pay off debt – while facilitating partial exits for existing investors. At the time, True North held a 57% stake and TA owned 38%.

The IPO prospectus said that Atria was India’s third-largest wired broadband internet service provider, with a 6.9% market share as of September 2017. It had 1.3 million broadband customers in 12 cities, as well as 710,000 cable TV customers. For the year ended March 2017, revenue and net profit were INR12.2 billion and INR735 million, respectively.

Partners Group expects the company to benefit from rapidly rising data consumption in India, which has been accelerated by new working and learning from home trends since COVID-19. However, Vageesh Gupta, a Partners Group investment professional, noted that the country still has among the lowest fiber-to-the-home penetration in the world.

The new investor will work with management and TA – which will retain a minority stake – on a value creation plan to support continued growth.

"Atria is on the frontline of digitization in India, providing fast, reliable broadband to millions of homes in the country. The company is an excellent opportunity for us to support the transformation of a growing business through expansion into new markets and development of new product offerings,” said Manas Tandon, a managing director for private equity at Partners Group, in a statement.

The PE firm’s other India investments include Vishal Mega Mart, a wholesale supplier to franchisee-operated Vishal-branded hypermarket network, Aavas Financiers, a housing finance provider, and Ecom Express, a door-to-door delivery specialist. Partners Group invested $250 million in Ecom last December, facilitating a partial exit for Warburg Pincus.

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• Topics
• South Asia
• Trade sale
• Buyouts
• Technology
• Infrastructure
• India
• Partners Group
• TA Associates
• True North