CVC Capital Partners plans to bolster its portfolio of Asian broadband companies by taking a 50 percent interest in Japan’s Arteria Networks.
The global firm will invest $150 million to purchase the stake from Japanese conglomerate and Arteria parent Marubeni Corp., according to a statement. No details were provided on closing conditions or the deal’s expected completion date.
The firm is deploying capital from its recently closed Asia Pacific IV Fund, which garnered $3.5 billion in commitments, according to a source familiar with the matter.
CVC did not immediately return a request for comment.
Arteria will be CVC’s third Asian broadband deal; in 2012, it spent HK$5 billion ($6.4 million, €5.2 million) to acquire Hong Kong Broadband Network and in 2011 it invested $275 million for a stake in Indonesian network operator PT Link NET.
CVC noted that Arteria was “one of only four operators in the country with a nationwide fibre network infrastructure” and “holds market leading positions with medium to large sized corporations, as well as condominium buildings in Japan”, according to the statement.
“We see significant growth potential in the B2B segment and Arteria is best positioned to capture this growth,” Norimitsu Niwa, Japan-based managing director for CVC, said in the statement.