Accel Buys British Telecom's 51% Stake In Accel Frontline
IT firm, Accel Limited has bought out 51% stake held by British Telecom in Accel Frontline Limited for Rs.49.9 Cr.
With this buyout, Accel holds a majority 70.44% stake in Accel Frontline.
Accel Limited is the promoter of Accel Frontline Ltd. In 2004, Frontline Technologies Corporation acquired a 42% stake in Accel ICIM which was later renamed 'Accel Frontline Ltd'.
In 2008, British Telecommunications Plc acquired 100% stake in Frontline Technologies Corporation Limited,. Thereafter, Accel Ltd sold 9% stake in Accel Frontline to BT for Rs.120 Cr, thereby making Accel Frontline a subsidiary of BT with 51% holding.
Transacton Reference: Times Of India
Founded in 1991 by N.R.Panicker, Chennai-based Accel Frontline provides system integration solutions comprising network design, hardware, software, and website development and implementation of customized software products.
It's products are used in various industries including banking, healthcare, manufacturing, education and government.
In 1999, Accel Frontline received first round of venture capital from ICICI Ventures, while second round of PE investment came from Intel Asia Pacific (the investment arm of Intel) in 2000.
Accel Limited operates in the domains of systems integration, technology services, software development and business process outsourcing. Accel's operations are spread across 59 cities in India, Singapore, Middle East and US.
Accel Limited operates through four independent corporate entities namely Accel Frontline Ltd, Accel Transmatic Ltd, Accel Systems Group Inc and Accel BPO.
The market cap of Accel Frontline is Rs.90 Cr. It posted total revenue of Rs.332.19 Cr with PAT of Rs.6.34 Cr for FY11, while for quarter ending March 2011, it posted total revenue of Rs.96.05 Cr with PAT of Rs.2.31 Cr.
In December 2010, BT sold 5.5% in Tech Mahindra to partner Mahindra & Mahindra for about Rs 450 Cr. Post sale, BT's holding came down to 24.5% in Tech Mahindra.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 09/08/11 | British Telecom - Accel Frontline - Accel Ltd | M&A | Accel Limited | 11.05 |
| 28/09/06 | Accel Frontline - Intel Capital Exit | Private Equity | - | |
| 28/09/06 | Accel Frontline Limited - IPO | IPO / Offerings | 9.21 | |
| 27/01/04 | Accel Frontline - Intel Capital, ICICI Exit | M&A | - | |
| 26/01/04 | Accel Frontline - Frontline Technologies Corporation | M&A | Frontline Technologies Corporation Limited | - |
| 31/12/99 | Accel Frontline - Intel Capital | Venture capital | Intel Capital | - |
| 31/12/98 | Accel Frontline - ICICI Emerging Sectors | Venture capital | ICICI Emerging Sectors Fund | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 21/05/12 | M&A | Bright Lifecare Private Limited | Madeinhealth.com | - | Completed |
| 21/05/12 | Venture Capital | Blume Ventures | Serendipity Infolabs Private Limited | - | Completed |
| 17/05/12 | M&A | Carzonrent India Private Limited | QCABS | - | Announced |
| 17/05/12 | M&A | Trivone Digital Services Private Limited | Chakpak Media Private Limited | - | Completed |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Accel Frontline Limited | Accel Limited Frontline Technologies Corporation Limited |
75, Nelson Manickam Road Aminjikarai |
www.accelfrontline.in | |
| Accel Limited | N R Panicker | No.124, 3rd Floor Nelson Manickam Road, Aminjikarai | www.accel-india.com | |
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