Kohlberg Kravis Roberts is committing additional funding to Silicon Valley communications software firm Aricent alongside Bahrain investor The Family Office in a transaction valued at $60 million (€34 million).
The new round of financing will mark KKR’s second investment in the firm. In 2006, KKR acquired a 76 percent stake in Aricent along with Sequoia Capital’s nine percent stake in a transaction that valued the entire business at $900 million. The seller, contract manufacturer Flextronics, retained the remaining 15 percent.
The new funding will consist of a $35 million tranche and a $25 million tranche, though the two firms’ precise commitments to each are unclear.
Aricent, which recorded fiscal year 2008 revenues of $382 million, 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. To date, 400 million handsets have shipped with Aricent’s software.
The firm plans to use the new money to fund organic expansion by growing its customer base.