What Circles is doing
Circles Group is carving out the unit that builds digital software for telecom operators as it reassesses strategy. The company is "looking for a partner or technology investor to join us for the next stage of growth," spokesperson Fabian Sossa said in a written response. He added, "The separation will also give Circles the independence to invest as necessary to support the platform business's strong growth."
The process so far
People familiar with the matter say Circles may aim for a deal value in the several hundred million dollars range for the digital software services business. The company has retained a financial adviser and begun contacting potential backers - including other tech firms and private equity investors - these people said, requesting anonymity because the talks are private. Sossa declined to comment on the specifics of the process, including potential investors, terms, or valuation.
Who backs Circles and where it plays
Circles, which also operates the consumer mobile brand Circles.Life, counts Warburg Pincus among its investors. Among its other backers are Founders Fund, Peak XV Partners, and the investment arm of the Singapore Economic Development Board. The company's website shows partnerships with carriers across 15 countries.
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Why it matters for your portfolio
If Circles brings in a strategic partner, the standalone platform could have more room to invest and scale - "to support the platform business's strong growth," as Sossa put it. For everyday investors, it is another nudge that the software behind connectivity keeps drawing private capital, even when public markets are jumpy.
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