Bahrain’s Investcorp to acquire NSE’s digital technology business for $120 mn

Bahrain-based alternative investment firm Investcorp will acquire NSEIT, a 100% subsidiary of the National Stock Exchange, for ₹1,000 crore ($119.76 million), the company announced. 

This transaction excludes the digital examinations business also housed inside NSEIT. 

NSEIT, the digital technology business of the NSE, is a leading provider of advanced digital transformation and cybersecurity services focused on global customers in capital markets, insurance, and banking, with 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. 

The acquisition represents one of the largest mid-market deals in India. 

The investment firm said that this new acquisition is an extension of Investcorp’s track record of investing in technology and IT services companies around the world, particularly in the US. NSEIT is focused on significant expansion in the US, where it has grown at over 50% CAGR over the last four years, by increasing its roster of clients across financial services.

Investcorp has invested in several mid-market companies across India’s private equity and asset-heavy real estate sectors. Its investments include Global Dental, Wakefit, Canpac, Xpressbees, Nephroplus, Safari Industries, InCred, Citykart, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure, and NDR Warehousing.

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.” 

Ashish Kumar Chauhan, managing director (MD) and and chief executive officer (CEO) of NSE, said, “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 the responsibility of NSEIT.” 

He added that Investcorp’s acquisition of NSEIT is a testament to the quality and potential of the business the firm has built, and NSE is confident that under Investcorp’s stewardship, NSEIT will not only continue to thrive but also reach new heights in innovation and market expansion.

“The acquisition by Investcorp marks a pivotal moment in NSEIT’s journey,” Anantharaman Sreenivasan (Ganesh), MD and CEO of NSEIT, said.

Varun Laul, a 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.” 

Laul said this acquisition aligns with Investcorp’s strategy of investing in deeply entrenched assets and supporting them in their global growth ambitions.

Earlier NSEIT’s acquisitions of Aujas Cybersecurity, an exclusive financial advisor to NSE, and cloudxchange.io strengthened its industry credentials and enabled it to offer a complete spectrum of cutting-edge services, including cybersecurity and cloud NSEIT delivers services across various markets. The company handles billions of real-time transactions for more than 300 global businesses, including 22 Fortune-500 and 5 Fortune-50 clients. 

Ernst & Young LLP served as the financial and tax advisor, while Anagram Partners was the legal counsel for this acquisition.