ACT Fibernet, broadband and internet service provider-backed by private equity firms such as True North and TA Associates, has invested an undisclosed amount in network intelligence solution provider Aprecomm in a bid to improve its offerings.
The Bengaluru-based telecom company Friday said it plans to integrate Aprecomm’s technology into its Wi-Fi products, which will help provide real-time network visibility into Wi-Fi performance, thereby allowing quick resolution of problems in last-mile connectivity.
"...(the) strategic investment in Aprecomm (will)further strengthen our experience proposition," said Bala Malladi, chief executive of ACT Fibernet.
The company caters to customers such as GTPL Hathway Limited, Netplus Broadband, Asianet, Excitel among others, and is now deployed in over 5 million devices worldwide.
“We are delighted to welcome ACT Fibernet as a strategic partner,” said Pramod Gummaraj, CEO of Aprecomm. “This investment will significantly enhance our mission to transform the internet landscape by revamping the quality of internet services for subscribers worldwide."
ACT provides internet, TV, data, and other broadband services in about 25 cities in the country, with about 2.2 million customers. It competes with the likes of Reliance Jio Infocomm and Bharti Airtel.
Private investors collectively own about 94.76% stake in ACT, with company executives holding the rest. Of this, True North and some of its limited partners own 57% stake in ACT through a special purpose vehicle Argan.
In August 2021, Swiss PE firm Partners Group said it would buy 75% stake in ACT in a deal that assigned the firm an enterprise valuation of $1.2 billion. The deal, however, fell through in October 2022.
True North’s third fund took a controlling stake in ACT in 2008. In 2016, True North’s fifth fund invested in Argan along with some limited partners, who bought a controlling stake in ACT along with TA Associates from True North’s third fund.
The company posted Rs 2,273 crore of operating revenue in FY23, about 5.4% more than the year before. Its profit grew 3.2% to Rs 353 crore in FY23.