iBus Networks backed by Morgan Stanley acquires Ubico Networks
Bangalore: iBus Networks and Infrastructure Ltd. has acquired Ubico Networks from Shyam Group in an all-cash deal. As per the agreement signed, iBus Group has acquired 100% stake in Ubico Networks, its in-building and in-campus neutral-host infrastructure business and all related assets, for around Rs 100 crore.
Ram Sellaratnam, CEO & MD, iBus, says, “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.”
Ms. Heera Girish, CFO, iBus believes that the combined entity of iBus & Ubico would lead to more consolidation in this space, delivering value & efficiency to all stakeholders.
Sanjay Kapoor who has been an advisor & investor to iBus since its early days, says, ''Unlike voice, 80% 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. Strong and wide availability of such networks is a pre-requisite to adoption of fifth generation network in India."
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 1 city in India.
Cipher Plexis was the exclusive advisor to the transaction.
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 & 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.
iBus recently raised $21 million from Morgan Stanley India Infrastructure fund for its inorganic expansion and technology development of the platform.
