CVC invests $150m in Marubeni's Japan broadband business

The transaction will give CVC joint ownership of the business alongside Marubeni, which will continue to hold a 49% stake. Arteria is a key operating subsidiary within Marubeni's information and communication technology (ICT) division, providing broadband connectivity and network solutions across the country.

According to a release, Arteria is one of just four players in Japan with a nationwide fibre network infrastructure offering internet connectivity, leased circuits, virtual private networks, data centers and related solutions. The business specializes in providing services to medium- to large-sized corporations and condominium buildings.

Marubeni is one of the largest Japanese trading companies with businesses across various sectors. The conglomerate's ICT, finance and insurance and real estate business - of which Arteria is a part - is one of its more profitable segments. The division generated a gross trading profit of JPY44.3 billion for the six months ended September, up 16.6% year-on-year.

Telecommunications is familiar turf for CVC in Asia, and this is the firm's third broadband network investment. The GP previously acquired Hong Kong Broadband Network, Hong Kong's second largest service provider, for just under HK$5 billion ($644 million) in 2012. Prior to that it invested in Indonesia's Link Net and then made a partial exit from the business earlier this year.

"There are many areas of potential synergies with CVC's telecom assets which we would look to pursue in order to accelerate Arteria's Asian expansion," said Hikaru Minami, managing executive officer at Marubeni, in statement

CVC was advised by Sangyo Sosei Advisory, Bank of America Merrill Lynch, Roland Berger, Alix Partners, Clifford Chance and PwC.

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• Topics
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• CVC Capital Partners
• buyout
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