Bahrain-based Investcorp buys NSE's digital services unit for Rs 1,000 crore

Alternative investment firm Investcorp has announced its acquisition of NSEIT, a core digital technology business of the National Stock Exchange of India (NSE), for Rs 1,000 crore. 

The strategic acquisition, which notably excludes NSEIT's digital examinations business, is aimed at bolstering Investcorp's presence in India's technology and financial services sectors.

One of the largest mid-market transactions

The deal marks one of the largest mid-market transactions in India, reflecting Investcorp’s strong commitment to expanding its technology and financial services investment portfolio in the region.

NSEIT, recognized for its digital transformation and cybersecurity services, serves a global clientele in the capital markets, insurance, and banking sectors, with significant operations in India, North America, and the Middle East.

Leadership comments

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."

Ashishkumar Chauhan, Managing Director and CEO of NSE, said, "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."

Anantharaman Sreenivasan (Ganesh), Managing Director and CEO 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."

Sreenivasan said the collaboration will enable the company to accelerate innovation, drive service excellence, and broaden capabilities to address the evolving needs of the industry.

Strategic impact and future prospects

This acquisition not only solidifies Investcorp's investment strategy in India but also aligns with its global plan to support mid-market companies across various sectors, including consumer, healthcare, and technology.

With this deal, Investcorp aims to further enhance its portfolio, which already includes significant stakes in various global IT services firms, and expand its footprint in the rapidly digitizing global financial services landscape.

Advisory roles in this transaction were played by Avendus Capital, which acted as the exclusive financial advisor to NSE and NSEIT, while Ernst & Young LLP and Anagram Partners served as financial, tax, and legal advisors to Investcorp, respectively.