Baring Private Equity Asia to Acquire 30% Stake in NIIT Technologies for Rs 2627 Cr

NIIT Technologies Limited, a leading global IT solutions organization, today announced that funds affiliated with Baring Private Equity Asia (“BPEA”), have signed definitive agreements to purchase approximately 18.85 million NIIT Technologies Limited shares (approximately 30% shareholding on a fully diluted basis in NIIT Technologies) from NIIT Limited and other promoter entities at a price of INR 1394 per share. The aggregate consideration for purchase of shares from promoter entities is estimated to be approximately INR 2627 crores (US$ 381 million at INR / USD exchange rate of 69).
In accordance with the Securities and Exchange Board of India Regulations, BPEA will make an open offer to the public shareholders of NIIT Technologies to purchase up to 26% additional shareholding at a price of INR 1394 per share. The aggregate consideration for purchase of shares from promoter entities and the open offer is estimated to be up to approximately INR 4890 crores (US$ 709 million at INR / USD exchange rate of 69) based on ownership of approximately 56% stake.
This transaction is conditional upon customary conditions, including receipt of required regulatory approvals, including anti-trust and competition clearances from Competition Commission of India.
Rajendra Pawar, Chairman, NIIT Technologies Limited, said: “NIIT Technologies Limited which became an independently listed company after demerger from NIIT Limited in 2004, has grown into one of the most innovative and trusted IT Services Company in India. The long-standing relationships with marquee customers, many spanning over two decades, are a consequence of a sharp focus on identified verticals including, travel, banking and insurance and distinctive capabilities developed. The involvement of Baring Private Equity Asia will provide further impetus to the management team led by CEO, Sudhir Singh to take the company to the next level of growth.”
Vijay Thadani, Vice Chairman & Managing Director, NIIT Limited, said: “We would like to thank everyone who has contributed in building NIIT Technologies into a leading global IT solutions company. Baring Private Equity Asia’s association will support the existing management team in capturing the opportunities in an increasingly digital world. This transaction will further support our growth from being No.1 IT Training Company since inception in India to a global leader in talent development.”
Jimmy Mahtani, Managing Director of BPEA, said: “BPEA is pleased to be investing in NIIT Technologies. We look forward to partnering with the company’s management team to continue to build the business over the coming years”.
Advisors
Credit Suisse acted as the exclusive financial advisor to NIIT Limited and other promoter entities. Shardul Amarchand Mangaldas & Co acted as the legal advisor to NIIT Limited. J. Sagar Associates and Ropes & Gray acted as legal advisors to BPEA.
In addition, NIIT Technologies today announced the signing of definitive agreement to acquire WHISHWORKS IT Consulting. WHISHWORKS IT Consulting is an IT services and consulting company specializing in MuleSoft and Big Data technologies, in which NIIT Technologies will acquire a 53% stake initially, with the remaining equity to be acquired over the next two years through pay-outs linked to financial performance.
NIIT Technologies also signed a definitive agreement for the sale of its entire 88.99% stake in Esri India Technologies Ltd to the other existing equity shareholder Environmental Systems Research Institute, Inc (Esri, Inc). Esri India Technologies is in the field of Geographic Information System (GIS) using the distributionship rights of Esri, Inc.