CIRCLES Global, a technology company whose backers include private equity firm Warburg Pincus, is considering a sale of its digital telecom services provider Circles.Life amid interest from prospective investors, according to people familiar with the matter.
The Singapore-based company is working with a financial adviser as it evaluates a potential sale that could value Circles.Life at a few hundred million US dollars, the people said, asking not to be identified because the process is private. Circles plans to retain its software-as-a-service platform, which helps telecommunications companies launch and operate digital brands, the people said.
Considerations are ongoing and no final decisions have been made, the people said. A representative for Circles declined to comment.
Singapore’s telecom industry includes players such as Singtel, StarHub, M1, and Simba Telecom.
Established in 2014, Circles has partnerships with telecom operators in 15 countries globally, according to its website. It launched Circles.Life two years later as a mobile virtual network operator using the network of M1 to offer services including voice, data, roaming and international calls.
Circles.Life has since expanded in other markets such as Taiwan, Australia, Indonesia and Japan. Other backers beyond Warburg Pincus include Peak XV Partners, formerly Sequoia Capital India & South-east Asia, EDBI and Founders Fund.
MVNOs, as the firms are often referred to, typically contribute to a significant part of cash flows to the firms that own the networks, making them a compelling acquisition target for telecom operators globally. BLOOMBERG
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