Baring Private Equity Asia (“BPEA”) acquires 30% Stakes (18.85 million shares) of NIIT Technologies Limited from NIIT Limited.
The cost of this deal is INR 1394 per share. The deal size is around $381 million.
In a filing with the Securities and Exchange Board of India Regulations, BPEA will also make an offer to other shareholders of NIIT Technologies to purchase 26% additional shareholding at a price of INR 1394 per share value up to approximately $709 million based on ownership of approximately 56% stake(controlling 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.”
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. 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”.
Besides this deal, NIIT Technologies also acquire controlling stakes in Hyderabad based WHISHWORKS IT Consulting, which specializes in MuleSoft and Big Data technologies.