TA Associates, a leading buyout and private equity firm, today
announced the completion of a significant minority investment in Idea
Cellular Ltd., one of the fastest growing providers of wireless
communications services in India. The Company's largest shareholder is
the Aditya Birla Group. Terms of the transaction were not disclosed.
Idea is a leading wireless operator in India with over 10 million
subscribers and operations in eleven of the country's major markets.
The Company is among the top five cellular service providers in India
by revenue, and among the top three within its current markets,
providing service to 58 percent of India's total telephony market. In
addition to its cellular services, Idea provides several innovative
value added services.
"We are excited at the opportunity to invest in Idea Cellular.
Given the low level of wireline penetration, wireless operators are
fulfilling a basic communications need in India and will continually
address larger proportions of the population," said Ajit Nedungadi,
Director of TA Associates Ltd., who led the transaction from TA's
London office. "Led by a strong management team, Idea Cellular is
investing aggressively to take advantage of this market opportunity.
We look forward to supporting the Company's growth."
The Indian wireless market has experienced tremendous growth in
this decade. Wireless subscribers in the country grew from three
million in 2000, to 80 million by the end of 2005. According to
Gartner, by the end of 2007, the country will have nearly 200 million
wireless subscribers. India recently overtook China as the world's
fastest growing wireless market, surging 80 percent over the past 12
months compared to 15 percent for China over that same period.
"Idea Cellular, as one of the fastest growing wireless carriers in
the fastest growing wireless market in the world, is a good
illustration of the type of private company, in an exciting growth
industry, in which TA seeks to invest," said C. Kevin Landry, Chief
Executive Officer of TA Associates. "This is TA's first foray into
Asia and we are very pleased to bring our communications experience to
bear in this market. We also look forward to working with the Aditya
Birla Group, one of India's most prestigious multinational
corporations, and our co-investors Providence Equity Partners and
ChrysCapital."
Founded in 1968, TA is one of the world's leading private equity
firms, and has extensive expertise investing in communications
companies. This is TA's second investment in wireless communications
in the last 12 months. In October 2005, TA led a $746 million equity
investment in MetroPCS Communications, the fastest growing wireless
carrier in the United States. Other investments by TA in the
communications sector include Asurion, Bachtel Cellular Liquidity,
Continental Cablevision, Finisar Corporation and SBA Communications.
Goodwin Procter served as legal counsel to TA Associates.
TA Associates
Founded in 1968, TA Associates is one of the largest and most
experienced private equity firms. With offices in Boston, Menlo Park
and London, the firm manages $10 billion in capital and has invested
in more than 370 companies. TA Associates provides growth equity
capital, leveraged recapitalization and management buyout financing
primarily for telecommunications and technology, consumer and retail,
financial services, business services and healthcare businesses. More
information about TA Associates can be found at www.ta.com.
Safe harbor statement under the U.S. Private Securities Litigation
Reform Act of 1995: Statements made in connection with this release
which are not historical fact, such as forward-looking statements
concerning future financial performance and growth, involve risk and
uncertainties. Such statements are subject to various factors that
could cause actual results to differ materially from those set forth
in the forward-looking statements. Any forward-looking statements
represent the best judgment of TA Associates and Idea Cellular as of
the date of this release. TA Associates and Idea Cellular disclaim any
intent or obligation to update any forward-looking statements.
This document is approved for issue in the UK by TA Associates
Ltd., which is regulated by the FSA.
