Altran Group Acquires Aricent in an All-Cash $2 Billion Deal

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Altran, a leading Engineering and R&D services (ER&D) provider, has entered into a definitive agreement to acquire Aricent, a leading provider of design and engineering services, for a total value of $2.00 billion (€1.73 billion) through an all-cash transaction. Altran and Aricent share a common vision of the drivers fueling accelerated growth in the ER&D market, and through their respective transformations they have developed capabilities to match the strategic criteria that top global clients expect from their ER&D partners.

Together with Aricent, Altran will consolidate its preferred access and long-term partnerships with top R&D spenders across all industries and leverage first-class access to blue-chip US clients. “We are excited to join forces with Altran, an organization that seamlessly aligns with our values and core mission. This acquisition is testament to Aricent’s long-standing and deep relationships with our clients and it recognizes the special talents and strength of our 10,500+ dedicated Aricent employees. We look forward to working closely with Dominique Cerutti (Altran’s Group Chairman & CEO) and his leadership team to bring even greater value to our clients,” commented Frank Kern, CEO, Aricent.

Delta Partners invested in Aricent in 2010 through the Delta Partners MENA Telecom Fund – its first Private Equity vehicle – joining other prominent shareholders including Kohlberg Kravis Roberts & Co. (KKR), Sequoia Capital, The Family Office and The Canadian Pension Plan (CPP) Investment Board. The transaction implies a 3.4x MoM on the capital invested by the Delta Partners MENA Telecom Fund.

Delta Partners has actively supported Aricent in its global development and growth since it invested in the company almost ten years ago. Delta Partners’ active engagement with management and the board via its board observer and strategic partner role has allowed it to provide consultative support on the overall direction of the firm. This includes providing specific input on its approach to developing global markets in the telecom sector.

Commenting on the acquisition, Kristoff Puelinckx, responsible deal partner for Delta Partners and Aricent’s board observer, commented: “We very much appreciate the close collaboration with KKR and the other shareholders of Aricent and the successful results achieved by CEO Frank Kern and his team over the years. The proposed transaction will forge an even stronger company in the sector and create a new global market leader.”

The transaction is expected to close during Q1 2018, subject to receipt of necessary anti-trust approvals and fulfilment of other customary conditions.

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