TPG Growth invests Rs 145 cr in AGS Transact

ATM outsourcing and systems integration company, AGS Transact Technologies, today said private equity major TPG has invested Rs 145 crore in it.

The infusion will be used to fund the Automated Teller Machines (ATM) outsourcing roll-outs undertaken by AGS on behalf of leading lenders such as Axis Bank, Corporation Bank, Dena Bank, Ratnakar Bank and Dhanlaxmi Bank, a release issued here said.

Further details on the transaction like the valuation reached between the two parties or any indication on the stake picked up were, however, not immediately known.

TPG Growth, the middle market and growth equity investment platform of TPG which has done the investment, will get two seats on the Board of AGS, the release said.

AGS, which has installed over 11,000 ATMs for 70 banks and actively services 7,000 ATMs presently, it added.

"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," TPG Growth Partner and Managing Director Varun Kapur said giving the rationale for the investment.

India presently has 75,000 ATMs which is expected to grow to 1,75,000 by 2015, the release said.