Local ISP Converge ICT Solutions announced this week that they have received their first outside investor from US-based Warburg Pincus according to an Inquirer.net report. The private equity is one of the world’s largest and this will be their first investment in the Philippines according to Converge ICT founder and president Dennis Anthony H. Uy. The $250 million or Php12.8 billion involves a sizable minority stake in Converge.
Uy states that the funds will help Converge roll out infrastructure as it aims to target 30% of the country’s broadband market in the coming years. “The public is hungry for broadband,” Uy stated in the signing ceremonies held on Monday.
Uy says that Warburg Pincus was selected as they have a deep understanding of the business and expertise. “It is not just about the money,” Uy said.
The fund will help Converge ICT realize its plans to complete their $1.8 billion national internet backbone. Further funding will be received from commitments from local banks to raise another $800 million.
As of this moment, Converge has half a million subscribers and Uy is targeting a million by Q1 2020. Uy notes that he hopes to capture 1/3 of the Philippines 22 million households.