FPT Corporation announced in Ha Noi today that it has issued new shares to Texas Pacific Group (TPG), the private equity firm, and Intel Capital, the venture capital organization of Intel Corporation.
Under terms of the agreement, FPT received a total investment of US$36.5 million from Intel Capital and TPG through its TPG Ventures fund.
This marks one of the largest cross-border investments into Viet Nam by leading global investment firms; underlining the long-term confidence that institutional investors have in the country.
“We intend to leverage the capabilities and financing from leading investors TPG and Intel Capital to enter new business lines and to expand internationally,” said Truong Gia Binh, CEO of FPT. “This is a landmark occasion for both Viet Nam and FPT. We believe this deal underscores the potential and capabilities within Viet Nam and sets a milestone in the country’s efforts towards joining the WTO.”
Sing Wang, a partner with Hong Kong based TPG, said, “This is a historic deal for TPG in Viet Nam, which is an increasingly enticing destination for outsourced services and foreign investment.”
Tim Dattels, also a partner with TPG, added, “In partnering with FPT, we are joining with Viet Nam’s national champion in the IT industry.”
Arvind Sodhani, President of Intel Capital, said, “Our investment in FPT reflects Intel Capital’s global presence and its reach in emerging markets. It is also a testament to our continuing efforts to encourage entrepreneurship and technological innovation worldwide. We see strong prospects for Viet Nam’s IT sector and look forward to making a contribution to the country’s success through the support of fast-growing companies such as FPT.”
This deal highlights the core investment strategies of both TPG Ventures and Intel Capital, which both support profitable and innovative enterprises with solid management teams that are well positioned in their respective fields.