Altran Group acquires Aricent, Delta Partners Capital’s portfolio company, in an all-cash $2 billion deal

Altran Group acquires Aricent, Delta Partners Capital’s portfolio company, in an all-cash $2 billion deal

Press releases

Altran, a global leader in Engineering and R&D services (ER&D), has entered into a definitive agreement to acquire Aricent, a global digital leader in design and engineering services, for a total value of $2.00 billion (€1.73 billion) through an all-cash transaction.

Altran and Aricent share a common vision of the drivers fueling accelerated growth in the ER&D market, and through their respective transformations they have developed capabilities to match the strategic criteria that top global clients expect from their ER&D partners. Together with Aricent, Altran will consolidate its preferred access and long-term partnerships with top R&D spenders across all industries and leverage first-class access to blue-chip US clients.

“We are excited to join forces with Altran, an organization that seamlessly aligns with our values and core mission. This acquisition is testament to Aricent’s long-standing and deep relationships with our clients and it recognizes the special talents and strength of our 10,500+ dedicated Aricent employees. We look forward to working closely with Dominique Cerutti (Altran’s Group Chairman & CEO) and his leadership team to bring even greater value to our clients.” commented Frank Kern, CEO, Aricent.

Delta Partners invested in Aricent in 2010 through the Delta Partners MENA Telecom Fund - its first Private Equity vehicle - joining other prominent shareholders including Kohlberg Kravis Roberts & Co. (KKR), Sequoia Capital, The Family Office and The Canadian Pension Plan (CPP) Investment Board.

The transaction implies a 3.4x MoM on the capital invested by the Delta Partners MENA Telecom Fund.

Delta Partners has actively supported Aricent in its global development and growth since it invested in the company almost ten years ago. Delta Partners’ active engagement with management and the board via its board observer and strategic partner role has allowed it to provide consultative support on the overall direction of the firm. This includes providing specific input on its approach to developing global markets in the telecom sector.

Commenting on the acquisition, Kristoff Puelinckx, responsible deal partner for Delta Partners and Aricent’s board observer, commented: “We very much appreciate the close collaboration with KKR and the other shareholders of Aricent and the successful results achieved by CEO Frank Kern and his team over the years. The proposed transaction will forge an even stronger company in the sector and create a new global market leader”.

The transaction is expected to close during Q1 2018, subject to receipt of necessary anti-trust approvals and fulfilment of other customary conditions.

 


Press contacts

Delta Partners
Santi Jansa
E: sj@deltapartnersgroup.com
T: +34 93 545 9300

Markettiers
Cheryl King / Rachel Lewis
E: deltapartners@markettiers.com
T: +971 (0)55 941 8449

About Delta Partners
Delta Partners is a leading global advisory and investment integrated platform. It is a unique hub for people, capital and knowledge to address challenges and opportunities in a changing TMD industry. With offices in the United Arab Emirates, South Africa, Spain, Singapore, Colombia and the United States of America, it serves its clients in both developed and emerging markets. Its unique combination of Management Consulting, Corporate Finance and Investments creates unparalleled value for clients, investors and business partners.
www.deltapartnersgroup.com

About Aricent
Aricent is a California based global provider of ER&D services, offering integrated design and engineering services mainly to clients of the Communications and Technology, Semiconductor and Software industries. Aricent brings design and engineering capabilities to help its clients get to market faster, transform legacy products to digital, and create new revenue opportunities. In 2017, the company generated revenues of $687 million. Aricent, which currently has ca.10,500 employees, of which ca.8,500 are located in India, operates through 24 engineering centers and design studios, serving ca.360 clients globally.
www.aricent.com

About Altran
As a global leader in Engineering and R&D services (ER&D), Altran offers its clients a new way to innovate by developing the products and services of tomorrow. Altran works alongside its clients on every link in the value chain of their project, from conception to industrialization. For over thirty years, the Group has provided its expertise to key players in the Aerospace, Automotive, Defence, Energy, Finance, Life Sciences, Railway, and Telecom sectors, among others. In 2016, the Altran group generated revenues of €2.120 billion. With a headcount of more than 30,000 employees, Altran is present in more than 20 countries.
www.altran.com

 

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