In a late evening statement, Mauritius-registered investment firm Argan and private equity fund TA Associates said they have signed definitive agreements for the deal which involves Argan making a complete exit while TA will be part-exiting.
In June 2008, True North Fund III acquired a controlling stake in ACT and brought in the company''s current management team. In 2016, a consortium of investors led by Indium V (Mauritius) Holdings, investing through Argan and TA, acquired a controlling stake in ACT from True North Fund III and other sellers, as per the statement.
A July 2015 report had said Argan and TA are investing USD 500 million to pick up an unspecified stake in ACT and the deal was subject to regulatory closures.
"We believe ACT will continue to benefit from the tailwinds of rising data consumption and are excited to continue our partnership with the management team in the next phase of the company''s journey alongside Partners Group," TA''s Managing Director Dhiraj Poddar said.
ACT has 7,000 employees and pitches itself as a service provider offering a package of internet, TV, data, and other broadband services, serving 20 lakh customers in 19 cities.
"Today, ACT is India''s fourth largest wired broadband service provider with revenues having grown at a CAGR (compounded annual growth rate) of 40 per cent since 2008.
"With a sustained focus on customer experience through passionate teams and operational excellence, we have fostered work from home, learn from home seamlessly during the recent past, reiterating our promise to our loyal customer base," ACT''s chief executive Bala Malladi said.
Pramod Kabra, exiting shareholder Argan''s nominee director on ACT, said the company has evolved exponentially during its partnership of nearly 15 years.
"We are immensely proud of the company''s sustained operational excellence and customer-centricity, which allowed it to become a household name," Kabra said. PTI AA ABM