Investcorp To Acquire NSE's Digital Technology Services Business For Rs 1,000 Crore
The acquisition is part of the expansion plan of Investcorp in India.
Investcorp has signed an agreement to acquire NSEIT Ltd., the digital technology business of the National Stock Exchange Ltd. for Rs 1,000 crore. However, the digital examination business housed by the NSEIT is excluded from the acquisition.
The acquisition is part of the expansion plan of Investcorp in India, the company said in a statement on Monday. "It is a significant step in our expansion efforts in India and it underscores our commitment to investing in high-growth sectors and backing credible founders and management teams," said Gaurav Sharma, head of India Investment Business at Investcorp.
Avendus Capital was the financial advisor to NSE and NSEIT, while Ernst & Young LLP was the financial and tax advisor to Investcorp. The lead counsel for Investcorp was Anagram Partners.
NSEIT is an advanced digital transformation and cybersecurity services provider, with a focus on global customers in capital markets, insurance, and banking. It has a strong presence in India, North America and Middle East.
A 100% subsidiary of the NSE, NSEIT has service offerings across digital transformation, cybersecurity, cloud services and digital examinations (the last not being part of the transaction).
It handles billions of real-time transactions for 300 plus global businesses, including 22 Fortune-500 and five Fortune-50 clients.
NSEIT is focused on significant expansion in the US, where it has grown at over 50% CAGR over the last four years, by increasing its roster of clients across financial services, the statement said. "This transaction is a continuation of NSE’s strategy to focus on its core business areas," said NSE CEO Ashishkumar Chauhan.
The deal adds to Investcorp’s push on scaling its investments in the technology and financial services sectors in India.
Investcorp manages $52 billion in assets, including assets managed by third-party managers. Investcorp has 14 offices in the US, Europe, GCC and Asia, including India, China, Japan and Singapore, and employs approximately 500 people from 50 nationalities globally.
