NewsBharti AirtelTelecom

Carlyle to Acquire 25% Stake in Airtel’s Data Centre Business

bharti airtel

The Carlyle Group will invest $235 million for approximately 25 percent stake in Nxtra Data Ltd, a wholly-owned subsidiary of Bharti Airtel engaged in the data centre business.

Bharti Airtel (“Airtel”), India’s largest integrated telecommunications operator, 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 (NASDAQ: CG) (together, “Carlyle”) today announced an agreement under which Comfort Investments II will invest US$235 million in Extra Data Limited (“Nxtra”), a wholly-owned subsidiary of Airtel engaged in the data center business.

Carlyle Acquire Stake in Airtel's Data Centre Business

The post-money enterprise valuation of Nxtra is approximately US$1.2 billion and Carlyle will hold a stake of approximately 25% in the business upon completion of the transaction, with Airtel continuing to hold the remaining stake of approximately 75%. The transaction is subject to the necessary regulatory approvals, including approval from the Competition Commission of India.

Headquartered in New Delhi, Nxtra from Airtel offers secure data centre services to leading Indian and global enterprises, hyperscalers, start-ups, SMEs 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.

“At Airtel, we have built a robust data centre portfolio that is future ready and scalable. For us, the security and data privacy requirements of our customers are our top priorities, which we have established as a key differentiator for our data centre offerings. Rapid digitization has opened up a massive growth opportunity for data centres in India and we plan to accelerate our investments to become a major player in this segment. We are delighted to have Carlyle as a strategic partner in this exciting journey, particularly given their experience in this industry, and look forward to working with them.”

– Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel

India is witnessing a considerable surge in demand for secure data centers as businesses undertake digital transformation and consumer demand for digital services continues to increase. The expansion of hyperscalers across the region following the government’s directive on data localization is propelling a lot of this demand, with other market drivers including the growth in user data and an increase in cloud penetration.

Carlyle Acquire Stake in Airtel's Data Centre Business

Nxtra is building multiple large data centers across the country to capture the significant growth opportunities in India. Last year, the Company commissioned a state of the art data center 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.

Greg Zeluck, Co-Head, Carlyle Asia Partners advisory team, added: “Airtel is a high quality partner in India with whom Carlyle executives have built a strong and constructive relationship with over many years. We are delighted to be collaborating on this together, and believe Airtel’s nation-wide network and strong governance coupled with Carlyle’s data centre experience and operational capabilities creates a compelling partnership that will help Nxtra to capture growing demand as data usage continues to surge.”

“India is set to become one of the largest markets in the world for digital services. Airtel, with its proven track record of solid execution and customer focus, is well positioned to leverage the potential growth of data centres in India. We look forward to collaborating with Airtel to unlock the full potential of Nxtra.”

-Neeraj Bharadwaj, Managing Director of the Carlyle Asia Partners advisory team

Airtel is the largest player in India’s enterprise connectivity segment and serves over 2,500 large businesses and over one million medium and small businesses.

Carlyle has prior experience in data center ownership through investments in Coresite in the US and Itconic in Spain. The firm has deep local knowledge within India has been investing in the market since 2000, with notable investments including SBI Life, SBI Card, HDFC, India Infoline, Delhivery, and PNB Housing Finance, as well as the recently announced Piramal Pharma Limited and SeQuent Scientific Limited. Carlyle had invested more than US$2.5 billion in India as of March 31, 2020.

1272 posts

About author
Lingraj is one of the youngest members of PhoneTalk, and a recent tech geek convert. When he's not churning out articles, you’ll find him watching sports, exploring new places, and listening to music.
Articles
Related posts
GadgetsNews

Oppo A33 2020 With 5000mAh Battery Now Launched in India: Price, Specification

Oppo A33 2020 smartphone has been launched in India. This smartphone has been specially introduced for budget range customers. Talking about the specification, a 5000mAh battery has been given in Oppo A33 2020. Chinese smartphone…
AppsNews

Netflix to Offer Free Trial of Its Service for a Weekend: Soon to Start in India

The good news for Netflix users is that they are going to get a special offer on the weekend. The company will start a free service on weekends in India, under which you will be…
GadgetsNews

Vivo V20 Pro to Launch in India By End of November, CEO Confirms

Now Indian users will not have to wait much for Vivo V20 Pro. This smartphone is going to be launched in India soon. It is the cheapest 5G smartphone of the company and has been…

Leave a Reply

Your email address will not be published. Required fields are marked *