Carlyle unit to take 25% stake in Airtel’s data centre business for $235 million

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The Carlyle Group-owned Comfort Investments II will purchase 25% stake in Bharti Airtel’s data centre business, Nxtra Data Ltd, for $235 million, the Sunil Bharti Mittal-owned telecom firm mentioned on Wednesday.

Following the transaction, Airtel will proceed to maintain the remaining 75% in its data centre business. The post-money enterprise valuation of Nxtra will stand at roughly $1.2 billion, Airtel mentioned in a press release.

The transaction with Comfort Investment, which is an affiliated entity of CAP V Mauritius Ltd, an funding fund managed and suggested by affiliated entities of Carlyle, is topic to crucial regulatory approvals, together with clearance from the Competition Commission of India (CCI), the assertion added.

“For us, the safety and data privateness necessities of our prospects are our prime priorities, which we now have established as a key differentiator for our data centre choices. Rapid digitization has opened up an enormous development alternative for data centres in India and we plan to speed up our investments to grow to be a significant participant in this section,” mentioned Gopal Vittal, managing director & chief government officer (MD & CEO), India and South Asia, Bharti Airtel.

Carlyle has been investing in Indian corporations since 2000, with names comparable to SBI Life, SBI Card, HDFC, India Infoline, Delhivery and PNB Housing Finance on its books. It lately invested in Piramal Pharma Ltd and SeQuent Scientific Ltd. Carlyle had invested greater than $2.5 billion in India as of 31 March, 2020.

“India is about to grow to be one of many largest markets in the world for digital companies. Airtel, with its confirmed monitor document of stable execution and buyer focus, is properly positioned to leverage the potential development of data centres in India. We look ahead to collaborating with Airtel to unlock the complete potential of Nxtra,” mentioned Neeraj Bharadwaj, managing director of the Carlyle Asia Partners advisory group.

Headquartered in New Delhi, Airtel’s Nxtra affords safe data centre companies to main Indian and world enterprises, hyperscalers, startups, small and medium enterprises (SMEs) and governments. Nxtra’s nation-wide portfolio of 10 giant data centres and greater than 120 edge data centres gives prospects with co-location companies, cloud infrastructure, managed internet hosting, data backup, catastrophe restoration, and distant infrastructure administration.

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