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TPG Growth invests Rs 145 cr in AGS Transact

Business Standard:  June, 2011

Mumbai: TPG, a global private equity firm arm, invested Rs 145 crore ($32 million) in AGS Transact Technologies (AGS), provider of ATM outsourcing and systems integration services.

The private equity firm has invested in the company through TPG Growth, the middle market and growth equity investment platform. With $2.5 billion under management, TPG Growth targets investments in a broad range of industries and geographies, utilising leveraged buyout, growth equity, and private investment in public equity (PIPE) structures.

AGS Transact will use these proceeds to fund the ATM outsourcing roll-outs for leading banks such as Axis Bank, Corporation Bank, Dena Bank, Ratnakar Bank and Dhanlaxmi Bank.

AGS has under contract over 7,000 ATMs, under the brown label ATM outsourcing and managed services model. In addition, AGS has installed over 11,000 ATMs for over 70 banks in India. The current installed base of 75,000 ATMs is expected to more than double reaching 175,000 machines by 2015.

“India has very low per capita ATM penetration by global standards with less than 70 ATMs per million people. We believe that expansion of their ATM networks is a key strategic initiative for Indian banks and expect the installed base to more than double over the next five years. AGS has emerged as the leading partner for banks in this initiative,” said Varun Kapur, partner and managing director, TPG Growth.

With the completion of this financing, two representatives of TPG Growth will join the board of AGS Transact Technologies. Avendus Capital was the financial advisor for this transaction.