Morgan Stanley-backed iBus Networks Acquires Ubico Networks For INR 100 Cr
Post the acquisition, iBus will become one of the largest neutral IBS companies with a pan-India presence covering every tier I city in India
iBus Networks and Infrastructure Ltd has announced on Tuesday to have acquired Ubico Networks from Shyam Group in an all-cash deal.
As per the agreement signed, iBus Group has acquired a 100 per cent stake in Ubico Networks, its in-building and in-campus neutral-host infrastructure business, and all related assets, for around INR 100 crore.
“iBus is on a mission to empower telecom companies and its consumers in utilizing the power of data as India gets ready to board the 5G bus. Our data consumption pattern is one of the highest in the World. With Ubico’s acquisition, iBus Networks will lead the way in providing neutral IBS and DAS infrastructure sharing with mobile operators, enabling them to serve their customers seamlessly,” said Ram Sellaratnam, chief executive officer and managing director, iBus.
Ubico founders have completely exited the company while 33 employees of Ubico will be joining iBus. Post this acquisition; iBus will become one of the largest neutral IBS companies with a pan India presence covering every tier-I city in India.
“The combined entity of iBus and Ubico would lead to more consolidation in this space, delivering value and efficiency to all stakeholders,” stated Heera Girish, chief financial officer, iBus.
Ubico currently covers over 200 million sq. ft spread across 400 sites in 42 cities with an average tenancy of 1.5 spread across 600 buildings and campuses. Ubico’s spread includes hotels, hospitals, IT parks, commercial office space, malls, and educational institutes, with many leading real estate developers across the country.
''Unlike voice, 80 per cent of data gets consumed indoors. Without effective in-building coverage, both data monetization and customer experience remain suboptimal. It’s been gratifying to see the iBus management team execute on their vision of developing a nationwide footprint of in-building coverage and playing a leadership role in enhancing the quality of in-building networks. The strong and wide availability of such networks is a prerequisite to the adoption of the fifth-generation networks in India," added Sanjay Kapoor, who has been an advisor and investor to iBus since its early days.
iBus has recently raised $21 million from the Morgan Stanley India Infrastructure fund for its inorganic expansion and technology development of the platform.
Cipher Plexis was the exclusive advisor to the transaction.