CX Partners invests in TSI’s India ATM business

According to a regulatory filing, in return for the investment, made in two tranches, CX Partners will obtain a 75% stake in TSN's wholly-owned subsidiary, TSI India. TSN will retain the remaining 25%.

TSI India is engaged in installation and management of ATMs and bill payment machines for banks and utility companies in India. TSI owns and operates around 974 ATMs in the country.

Both parties have signed a binding letter of intent and will be negotiating definitive agreements. The deal is still subject to shareholder approval and the TSI India successfully securing contracts for the supply of 500 new ATM machines at an agreed internal rate of return, within four months.

The investment is being made through CX Partners' $515 million maiden fund, one of the largest India-focused PE funds targeting growth opportunities.

There are 59 ATMs per million people in India, three times less than China, but each machine handles an average 53,595 transactions each year, 40% higher than China and three times the US level.

In order to address the mismatch, a consortium of state-run Indian banks has opened the business to independent contractors, with a view to outsourcing 63,000 ATMs to various service providers. A number of these contractors are supported by private equity and venture capital players.

Earlier this year, International Finance Corporation (IFC) committed $2.7 million to Vortex Engineering, an Indian ATM manufacturer already backed by Tata Capital and Bamboo Finance. In August, Actis invested $40 million in TPG Capital-backed AGS Transact Technologies (AGS), one of the leading ATM outsourcing and payments companies in India.

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• Topics
• South Asia
• Financials
• Buyouts
• Financial Services
• India
• CX Partners
• IFC
• Tata Capital
• Bamboo Finance
• Actis Capital