BPEA will invest ₹2,600 crore in NIIT

Prepares to pick up 30% stake

The NIIT computerdrome in South Extension is a high tech facility, equipped with a large number of computers. It's software library of almost all popular software packages lets students explore computers at a pace they want, at a time they want. The computerdrome functions from 7 am to 9 pm through the entire week including Sundays.
PHOTO: THE HINDU ARCHIVES

Baring Private Equity Asia (BPEA), has signed definitive agreements to buy a 30% stake in NIIT Technologies Limited shares from NIIT Limited and other promoter entities at a price of ₹1,394 per share, aggregating to ₹2,627 crore, and make an open offer thereafter to increase its stake up to 56% for a total consideration ₹4,890 crore.

“In accordance with the SEBI Regulations, BPEA will make an open offer to the public shareholders of NIIT Technologies to purchase up to 26% additional shareholding at a price of Rs 1,394 per share. The aggregate consideration for purchase of shares from promoter entities and the open offer is estimated to be up to approximately INR 4,890 crores based on ownership of approximately 56% stake,” said a statement from NIIT Technologies.

Commenting on the deal, 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 involvement of Baring Private Equity Asia will provide a 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, “BPEA’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,” he added.

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.

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”.

NIIT Technologies also announced the signing of an agreement to acquire big data firm WHISHWORKS IT Consulting.

NIIT will initially acquire a 53% stake, with the remaining equity to be acquired over the next two years.