Bahrain-based private equity and real estate investor Investcorp has entered into an agreement to acquire NSEIT, the digital technology business subsidiary of National Stock Exchange (NSE) for an Rs 1,000 crore (around $120 million as per current rates).
The transaction, however, will exclude the digital examinations vertical housed under NSEIT.
NSEIT provides digital transformation and cybersecurity services focussed on global customers in the capital markets, insurance and banking. It has a presence in India, North America and the Middle East. The deal comes at a time when NSEIT is focussing on expansion in the US, a market where it has recorded over 50% growth (CAGR) in four years, a company statement noted. It claimed that NSEIT handles over a billion real-time transactions for more than 300 global businesses.
"The acquisition by Investcorp marks a pivotal moment in NSEIT’s journey. NSEIT has created a niche with a strategic focus on capital markets and financial services sector. NSEIT’s credentials combined with Investcorp’s global reach, uniquely positions us to drive value enhancement for our clients, both present and future. We thank NSE for its guidance and leadership in enabling NSEIT to achieve a formidable position in India and global markets," said Anantharaman Sreenivasan, MD & CEO of NSEIT.
Avendus Capital was the exclusive financial adviser to NSE and NSEIT. Ernst & Young LLP served as the financial and tax adviser to Investcorp, with Anagram Partners being the legal counsel to Investcorp.
“This transaction is a continuation of NSE’s strategy to focus on its core business areas, and we are pleased that Investcorp is assuming responsibility of NSEIT,” said Ashish Chauhan, MD & CEO of NSE.
Investcorp’s India portfolio consists of mid-market companies across asset-light (private equity) and asset heavy (real estate) sectors. In private equity, Investcorp targets the consumer and retail, healthcare, financial services, B2B, and technology sectors. Some of its portfolio firms are Global Dental, Wakefit, Canpac, Xpressbees, Nephroplus, Safari Industries, InCred, Citykart, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure and NDR Warehousing.
Investcorp’s co-CEO Rishi Kapoor had recently told VCCircle in an interview that the firm had seen a 5x growth in global AUM to $50 billion this year. It is in the process of raising an India PE fund, a Saudi pre-IPO fund, and a $750-million climate vehicle.
Gaurav Sharma, Head of India Investment Business at Investcorp, said, “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.”
