Baring Private Equity Asia (BPEA), has signed definitive agreements to buy 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 it stake upto 56% for 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 ₹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 further impetus to the management team led by CEO, Sudhir Singh to take the company to the next level of growth.”
This transaction is conditional upon customary conditions, including receipt of required regulatory approvals, including anti-trust and competition clearances from Competition Commission of India
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.”
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”.
Beisdes, NIIT Technologies also announced the signing of definitive agreement to acquire WHISHWORKS IT Consulting, which specialises in MuleSoft and Big Data technologies.
NIIT Technologies will initially acquire a 53% stake, with the remaining equity to be acquired over the next two years through pay-outs linked to financial performance.
NIIT Technologies also signed a definitive agreement for the sale of its entire 88.99% stake in Esri India Technologies Ltd to the other existing equity shareholder Environmental Systems Research Institute, Inc (Esri, Inc), said the statement adding that Esri India Technologies is in the field of Geographic Information System (GIS) using the distributionship rights of Esri, Inc.
NIIT Technologies shares on BSE closed up 1.47% at ₹1,349.50 in a firm Mumbai market on Friday, valuing the company at ₹8,337.73 crore while NIIT Ltd shares closed up 8% at ₹95.45.
