Investcorp to acquire NSE’s technology services business

Investcorp, a global alternative investment firm, has acquired NSEIT, the digital technology business of the National Stock Exchange (NSE) for Rs1000 crore, stated a press release. The transaction excludes the digital examinations business that is also housed inside NSEIT.
NSEIT, a leading provider of digital transformation and cybersecurity services focused on global customers in capital markets, insurance, and banking, 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, added the release. 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.

“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,” said Gaurav Sharma, Head of India Investment Business at Investcorp.

“This transaction is a continuation of NSE’s strategy to focus on its core business areas,”said Ashish Kumar Chauhan, MD and CEO of NSE. 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, he added.

“NSEIT’s capabilities in advanced digital and cybersecurity technologies combined with its vertical focus in financial services uniquely position it for global growth,”said Varun Laul, Partner at Investcorp.

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.

Investcorp is active in the mid-market private equity space in India and has invested across the consumer tech, healthcare, financial services, retail, SaaS, e-commerce, and technology sectors. Its major investments include Intergrow Brands, Freshtohome, Zolo Stays, InCred Finance, Citykart, Wakefit, InsuranceDekho, NephroPlus, Unilog, and XpressBees.