Baring Private Equity Asia is set to acquire a 30.04% stake in IT solutions firm NIIT Technologies from NIIT and other promoter entities at Rs 1,394 per share, which will take the transaction cost to Rs 2,627 crore, according to a statement released by the firm to the stock exchanges on Sunday. NIIT Tech and other promoter entities will be selling 1.885 crore shares as part of this transaction.
NIIT will be selling 23.10% in NIIT Tech. The Thadani Family Trust, along with other entities/members of the family, and the Pawar Family Trust along with other entities/members of the family, will be selling an aggregate of 6.94% stake, NIIT Tech indicated in the filing. NIIT Tech closed Friday s trading session up 1.47% at Rs 1,349.50 on the BSE.
Baring Private Equity Asia (BPEA) is also making an open offer to the shareholders of NIIT Technologies to buy an additional 26% stake in the firm at a price of Rs 1,394 per share. As a result, BPEA is looking to acquire a total of 56% stake in the IT firm for a consideration of Rs 4,890 crore. NIIT Technologies chairman Rajendra Pawar said 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 next level of growth, he said.
Credit Suisse acted as the exclusive financial adviser to NIIT Limited and other promoter entities. NIIT Technologies also announced on Sunday that it is set to acquire Whishworks IT Consulting, an IT services and consulting company specialising in MuleSoft and Big Data technologies. NIIT Technologies will acquire a 53% stake initially, with the remaining equity to be acquired over the next two years through payouts linked to financial performance.
NIIT Technologies has also signed a definitive agreement for the sale of its entire 88.99% stake in Esri India Technologies to the other existing equity shareholder Environmental Systems Research Institute. Esri India Technologies is in the field of Geographic Information System (GIS). NIIT Tech focuses on three key verticals: banking and financial services, insurance, travel and transportation. The firm, with over 10,000 employees, serves clients across Americas, Europe, Asia, and Australia.
BPEA, which has a total committed capital of over $17 billion, runs a PE investment programme, sponsors buyouts and provides growth capital to companies for expansion or acquisitions with a particular focus on the Asia Pacific region. It also invests into companies globally that can benefit from further expansion into the Asia Pacific region.