Private equity firms TA Associates and India Value Fund Advisors (IVFA) have agreed to invest $500 million in Bengaluru-based broadband and communication services provider, Atrium Convergence Technologies (ACT).

As part of the transaction, India Value Fund III, the current majority shareholder of ACT, will be selling a significant portion of its shareholdings.

IVFA has made the latest investment through Argan, a company controlled by Indium V, the India-dedicated fund of IVFA. IVFA is an adviser to Indium V and a manager of India Value Fund III. Meanwhile, TA Associates is the new investor company. After the transaction is completed, Naveen A Wadhera, co-head of Asia at TA Associates Asia Pacific Limited, and Dhiraj Poddar, co-head of India at TA Associates Advisory Private Limited, will join ACT’s board.

ACT has a reach of one million subscribers in the southern Indian states of Karnataka, Andhra Pradesh, Telangana and Tamil Nadu. It offers high-speed Internet over fibre optics and high-definition television.