Companies

Vista Equity Partners deal to position Jio Platforms as a consumer, technology firm

Rajesh Kurup Mumbai | Updated on May 08, 2020

The Rs 11,367-crore investment by private equity firm Vista Equity Partners in Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), will position the company as a consumer and technology firm.

“We also highlight that players like Vista and Silver Lake primarily invest in technology platforms and not in telecom companies, which will further reposition Jio Platforms (including Reliance Jio Infocomm) as a consumer/technology company,” Axis Capital said in a report.

Investment by Vista in Jio Platforms will be used for redemption of optionally convertible preference shares (OCPS) held by RIL (will go to RIL).

The investment will further help in pegging equity value of Jio Platforms (which owns Reliance Jio Infocomm) and also improve the cash flow, thus accelerating the company’s deleveraging initiative, it added.

READ THE STORY: Jio Platforms raises ₹11,367 crore from Vista Equity Partners

Vista is an American private equity and venture capital firm focused on financing software and technology-enabled startup businesses and passive equity investments. Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.

On Friday, in its third mega-deal within a span of three weeks, Jio Platforms, a wholly-owned subsidiary of RIL said it raised Rs 11,367 crore in lieu of a 2.32 per cent stake from private equity firm Vista Equity Partners.

VISTA’S RECENT INVESTMENTS

* March 2020: Vista acquired Tripleseat, a web-based sales and event management technology solution

* September 2019: Vista bought a majority stake in Acquia, which provides enterprise products, services and technical support for open-source web content management platform Drupal

* May 2019: Vista acquired Black Mountain Systems, a provider of workflow automation software solutions for credit investors and alternative asset managers

* April 2019: Vista added sports content provider Perform to its portfolio

* February 2019: Strategic partnership with Four Winds Interactive, a provider for enterprise-grade visual communications

Published on May 08, 2020

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