Baring Private Equity Asia to acquire 30% stake in NIIT Technologies
NIIT also said it would be selling its entire 88.99% stake in Esri India Technologies to the other existing equity shareholder Environmental Systems Research Institute, Inc
IT solutionsfirmNIIT Technologiestoday announced that funds affiliated withBaring Private Equity Asiahave signed definitive agreements to purchase approximately 30% shareholding in the company from NIIT and other promoter entities.
It will also make an open offer to purchase up to 26% additional shareholding in the firm. Baring will acquire 18.85 million NIIT Technologies shares from the promoters at Rs 1,394 per share, or approximately Rs 2,627 crore ($381 million).
The aggregate consideration for the purchase of shares from promoter entities and the open offer is estimated to be up to approximately Rs 4,890 crore ($ 709 million) 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.
NIIT Technologies also announced today that it has signed a definitive agreement to acquireWHISHWORKS 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.
The company also said it would be selling its entire 88.99% stake inEsri IndiaTechnologies 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).
Rajendra Pawar, Chairman, NIIT Technologies, said: NIIT Technologies which became an independently listed company after demerger from NIIT 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 Asias 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 companys management team to continue to build the business over the coming years.
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.
RELATEDTags :CorporateNIIT TechnologiesIT solutionsBaring Private Equity AsiaWHISHWORKS IT ConsultingEsri IndiaComment on this
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