Global alternative firm Investcorp acquires NSEIT for Rs 1,000 crore

Global alternative firm Investcorp, today announced that it has entered into an agreement to acquire NSEIT, the digital technology business of the National Stock Exchange for a total consideration of Rs 1,000 crore. The transaction excludes the digital examinations business that is also housed inside NSEIT. This is one of the largest deals for Investcorp in India.

This acquisition represents one of the largest mid-market deals in the country, said the firm in a statement. It highlights Investcorp’s commitment towards scaling its investments in the technology and financial services sectors in India.

NSEIT is a leading provider of advanced digital transformation and cybersecurity services focused on global customers in capital markets, insurance, and banking. NSEIT has a strong presence in India, North America, and the Middle East. The company’s offerings include digital engineering, data and analytics, artificial intelligence, cloud services, and cybersecurity services.

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. This transaction also highlights our unique ability to bring together our global platform as we look forward to driving international business working closely with our colleagues in the US and the rest of the world."

This acquisition is an extension of Investcorp’s track record of investing in technology and IT services companies around the world, particularly in the US. Synergistically, NSEIT is focused on significant expansion in the US, where it has grown at over 50 per cent compound annual growth rate over the last four years, by increasing its roster of clients across financial services.

Ashishkumar Chauhan, managing director and chief executive officer of the National Stock Exchange, shared, “This transaction is a continuation of NSE’s strategy to focus on its core business areas and we are pleased that Investcorp, which is a leading global investor with deep experience in IT services, is assuming responsibility of NSEIT. Their acquisition of NSEIT is a testament to the quality and potential of the business we've built.”

NSEIT handles billions of real-time transactions for 300+ global businesses, including 22 Fortune-500 and 5 Fortune-50 clients.

Anantharaman Sreenivasan (Ganesh), managing director and chief executive officer of NSEIT, said, “NSEIT has created a niche, through its deep expertise in digital transformation and cybersecurity services with a strategic focus on capital markets and financial services sector. NSEIT’s strong credentials combined with Investcorp’s global reach, uniquely positions us to drive value enhancement for our clients, both present and future. This collaboration will enable us to accelerate innovation, drive service excellence, and broaden our capabilities to address the evolving needs of the industry.”

Avendus Capital acted as the exclusive financial advisor to the National Stock Exchange and NSEIT. Ernst & Young LLP served as the financial and tax advisor to Investcorp with Anagram Partners acting as the legal counsel to Investcorp.

In India, Investcorp is a leading investor in mid-market companies across asset-light (private equity) and asset-heavy (real estate) sectors. In private equity, Investcorp targets opportunities across consumer and retail, healthcare, financial services, business-to-business, and technology sectors. Its investments in India include Global Dental, Wakefit, Canpac, Xpressbees, Nephroplus, Safari Industries, InCred, Citykart, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure and NDR Warehousing.