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KKR, CPPIB invest $255m in Aricent

KKR has further backed its first-ever Indian investment, bringing its stake to 79% in the telecoms-focused software company.

Kravis Kohlberg Roberts has increased its stake in communications software firm Aricent, investing $255 million in the company alongside the Canada Pension Plan Investment Board (CPPIB).

Their individual investments were not disclosed.

KKR first invested in Aricent in 2006, when it was known as Flextronics Software Systems. In its first-ever Indian deal, the firm acquired a 76 percent stake at the same time as Sequoia Capital acquired a 9 percent stake. The transaction valued the company at $900 million. In September 2008, KKR invested a further $60 million in Aricent along Bahrain Investor The Family Office.

The most recent investment brings KKR's stake in the company to 79 percent, the firm said in a statement.

Sanjay Nayar, chief executive officer of KKR India, noted Aricent continues to grow its customer base and recently reported its highest annual revenue in its history. It had $460 million in revenues for the fiscal year ended in March.

KKR continues to see “tremendous upside”, added KKR executive James Greene. 

Founded in 1991 as Hughes Software Systems, Aricent designs software for mobile phones and telecommunications equipment, including user applications and services, operations and billing systems. The company has a portfolio of 125 such products, which it licenses to cell phone manufacturers and telecommunications infrastructure providers, among others, for a fee.