Investcorp to acquire NSEIT, the digital technology services business of the National Stock Exchange (NSE) for INR 1,000 Crores

29 Apr 2024

Investcorp, a leading global alternative investment firm today announced that it has entered into an agreement to acquire NSEIT, the digital technology business of the NSE. The transaction excludes the digital examinations business that is also housed inside NSEIT. This acquisition of INR 1,000 crores represents one of the largest mid-market deals in the country. 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 Middle East. The Company’s offerings include digital engineering, data and analytics, artificial intelligence, cloud services, and cybersecurity services. 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% CAGR over the last 4 years, by increasing its roster of clients across financial services.

Gaurav Sharma, Head of India Investment Business at Investcorp, said, “We are pleased to announce our acquisition of NSEIT. 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.”

Shri Ashishkumar Chauhan, MD and CEO of NSE, shared, “This transaction is a continuation of NSE’s strategy to focus on its core business areas as desired by SEBI. 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. We are confident that under Investcorp’s stewardship, NSEIT will not only continue to thrive but also reach new heights in innovation and market expansion.”

Varun Laul, Partner at Investcorp, added, “NSEIT’s capabilities in advanced digital and cybersecurity technologies combined with its vertical focus in financial services uniquely position it for global growth. The acquisition aligns with our strategy of investing in deeply entrenched assets and supporting them in their global growth ambitions.”

Shri Anantharaman Sreenivasan (Ganesh), MD and CEO of NSEIT, said, “The acquisition by Investcorp marks a pivotal moment in NSEIT’s journey. 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. We thank NSE for its guidance and leadership in enabling NSEIT to achieve a formidable position in India and global markets.”

Avendus Capital acted as the exclusive financial advisor to NSE 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, B2B, 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.

NSEIT Limited is a leading technology enterprise focused on delivering excellence in complex digital environments, primarily in the capital markets, asset management, insurance and banking ecosystems around the world. A 100% subsidiary of the NSE, NSEIT Limited has service offerings across digital transformation, cybersecurity, cloud services and digital examinations (the last not being part of the transaction). The Company’s acquisitions of Aujas Cybersecurity and not only strengthened its industry credentials but enabled it to offer a complete spectrum of cutting-edge services including cybersecurity and cloud. NSEIT today delivers services seamlessly across India, North America and the Middle East. It handles billions of real time transactions for 300+ global businesses, including 22 Fortune-500 and 5 Fortune-50 clients. NSEIT has several awards for its service excellence and its commitment to people. It was awarded the ‘Top Services Partner’ at ElasticON in 2023 and the Enterprise Cloud Adoption Award by NASSCOM in 2022 and was ranked among the Top 10 Places to Work by Rainmaker in 2021.