KKR leads second investment in portfolio company Aricent

The $60 million investment, made alongside Middle East investor The Family Office, marks the buyout firm’s second investment in the company, which it acquired in 2006.

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.