Carlyle to acquire about 25% stake in Airtel’s data centre business for about Rs 1,780 crore

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NEW DELHI: The Carlyle Group will acquire about 25 per cent stake in Airtel‘s data centre business, Nxtra Data, for $235 million (about Rs 1,780 crore), the corporate stated in an announcement on Wednesday.
This will peg the enterprise valuation of Nxtra at $1.2 billion which is over Rs 9,084 crore.
On completion of the deal, Carlyle will maintain about 25 per cent stake in the business with Airtel persevering with to maintain the remaining stake of about 75 per cent.
“Bharti Airtel and Comfort Investments II, an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated entities of the Carlyle Group, today announced an agreement under which Comfort Investments II will invest $235 million in Nxtra Data Limited, a wholly owned subsidiary of Airtel engaged in the data centre business,” a Bharti Airtel assertion stated.
The transaction is topic to regulatory approvals, together with nod from the Competition Commission of India.
Nxtra, which is headquartered in New Delhi, presents data centre companies to main Indian and world enterprises, start-ups, small and medium companies and governments.
“Nxtra’s nation-wide portfolio of 10 large data centres and more than 120 edge data centres provides customers with co-location services, cloud infrastructure, managed hosting, data backup, disaster recovery, and remote infrastructure management,” the assertion added.
It stated that India is witnessing a substantial surge in demand for safe data centres as companies undertake digital transformation and shopper demand for digital companies continues to enhance.
“The expansion of hyperscalers across the region following the government’s directive on data localisation is propelling a lot of this demand, with other market drivers including the growth in user data and increase in cloud penetration,” it stated.
Nxtra is constructing a number of massive data centres to seize the numerous progress alternatives in the nation.
“Last year, the company commissioned a data centre in Pune and is building more across Chennai, Mumbai and Kolkata. Nxtra will use the proceeds from this transaction to continue scaling up its infrastructure and offerings across the country,” it stated. Commenting on the deal, Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel, stated, “At Airtel, we’ve got constructed a sturdy data centre portfolio that’s future prepared and scalable. For us, the safety and data privateness necessities of our clients are our prime priorities, which we’ve got established as a key differentiator for our data centre choices”.
“Rapid digitisation has opened up an enormous progress alternative for data centres in India and we plan to speed up our investments to develop into a significant participant in this phase,” he added.
India is ready to develop into one of many largest markets in the world for digital companies, Neeraj Bharadwaj, Managing Director of the Carlyle Asia Partners advisory group stated. “Airtel, with its confirmed observe report of strong execution and buyer focus, is effectively positioned to leverage the potential progress of data centres in India. We look ahead to collaborating with Airtel to unlock the complete potential of Nxtra,” he added.
Airtel is the most important participant in India’s enterprise connectivity phase and serves over 2,500 massive companies and over a million medium and small companies.
Carlyle has prior expertise in data centre possession by means of investments in Coresite in the US and Itconic in Spain.
“The agency has deep native information inside India having been investing in the market since 2000, with notable investments together with SBI Life, SBI Card, HDFC, India Infoline, Delhivery and PNB Housing Finance, in addition to the not too long ago introduced Piramal Pharma Limited and SeQuent Scientific Limited. Carlyle had invested greater than $2.5 billion in India as of March 31, 2020,” the assertion stated.

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