The Hindu Business Line : KKR, Bahrain co to inject $60 m in Aricent

New Delhi, Sept. 23 Aricent, a technology and outsourcing company focused on communications industry, on Tuesday announced that Bahrain-based The Family Office and existing investor KKR would inject a combined $60 million, into the company in two rounds.

The fresh equity investments – which would be utilised for acquisitions and expanding current operations – involve $30 million in the first round and a similar amount in the upcoming round to be closed in the next 30 days.

“The investments would be used for growing our business organically, and also for acquisitions. We are looking at the acquisition of companies in communications service provider space and communications applications space,” Mr Sanjay Dhawan, President and COO of Aricent, told Business Line.

He said that besides strengthening the balance sheet, the investments from The Family Office were also in tune with the company’s growth plans for the West Asian region. “We have set up a sales office in Dubai, and are looking aggressively at the West Asian region. We wanted a partner who could help us with the growth plans,” he added.

The Family Office headquartered in Bahrain, and with an office in London, is a multi-family office company focused on fulfilling the wealth management needs of private and institutional clients in the Arabian Gulf.

First round

The first round of funding has already flowed into Aricent, Mr Dhawan said but did not divulge the stake that the investors would get following the infusion. “Prior to this investment, KKR, Sequoia Capital and Flextronics together held 85 per cent stake, with management and employees holding the balance 15 per cent stake,” he added adding that KKR would remain the majority investor in the company post investment.

Elaborating on the acquisition plans, Mr Dhawan said that an ideal sweet spot for buyouts would involve companies with revenue of $30-60 million.

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