Chennai-based IT and media firm, Accel Ltd, yesterday announced that it had acquired the 51-per cent stake held by BT (formerly British Telecom) in Accel Frontline Ltd.
On 27July 2011, Accel had entered into an agreement with BT Frontline Pvt Ltd, a wholly owned subsidiary of BT Group, to acquire its stake. The off-market transaction was concluded on 5 August. After the acquisition of the BT stake, Accel holds a 70.44-per cent stake in Accel Frontline.
According to NR Panicker, chairman, Accel, being the original promoters of Accel Frontline Ltd, the company understood the dynamics of the business and it believed that Accel Frontline had tremendous growth potential. He added that as a first step, the company planned to consolidate similar group businesses.
In 2004, Accel ICIM formed a joint venture with Singapore-based Frontline Technologies, which acquired a 42-per cent stake in the then Accel ICIM. Accel ICIM was later named Accel Frontline, of which Accel is the founding promoter.
In 2008, BT fully acquired Frontline Tech after which Accel sold 9 per cent of its stake in Accel Frontline to BT Frontline thus making Accel Frontline a subsidiary of BT Frontline.
Now after having seen hands being changed a couple of times, AFL has again come under the control of its parent.
Accel is the holding company of AFL, Accel Transmatic, Accel Frontline Services, Accel Media Ventures, Accel Systems group and Accel IT Resources.
The companies of the group operate in the domains including system integration, software development and technology, BPO and training services.