NTT divests 69.14% stakes in Pune’s Nihilent

Japanese telecommunications giant NTT has successfully divested its entire 69.14 per cent controlling stake in the Pune-based IT consulting and services firm, Nihilent.

The stake was acquired by Nihilent’s founder and promoter, LC Singh, who exercised his first right of refusal. The transaction was completed through a leveraged buyout, with Singh securing debt financing from a consortium of two funds: ICICI Prudential Corporate Credit Opportunities Fund AIF-I and Piramal Structured Credit Opportunities Fund.

While the exact financial details of the deal remain undisclosed, sources indicate that in mid-2022, NTT had sought a valuation for Nihilent at approximately Rs 2,500 crore (USD 314 million). With this transaction, Nihilent undergoes a transformative shift, transitioning into a management-owned entity. The leveraged buyout, facilitated by ICICI Prudential Corporate Credit Opportunities Fund and Piramal Structured Credit Opportunities Fund, underscores Singh’s interest to retaining control of the company.

Nihilent, founded in 2000 by industry veteran LC Singh, is a global consulting and services company celebrated for its human-centric approach to problem-solving and change management.

Operating across South Africa, India, the USA, Sweden, the UK and Australia, Nihilent is poised for strategic expansion following this acquisition. The move aligns with the company’s vision, focusing on strengthening market presence, bringing its intellectual properties and products to market, and bolstering capabilities in cutting-edge technologies such as AI, ML, XR and Generative AI.

“We are excited to announce the successful buyout of the controlling stake from NTT Ltd. This strategic move allows Nihilent to regain full control and autonomy over its operations, enabling us to implement our vision and business strategies more effectively. We extend our gratitude to NTT Ltd. for their support and collaboration over the years. Their contributions have been instrumental in our success, and we look forward to building on the foundation they helped us establish,” said LC Singh, Executive Chairman, Nihilent. BW Businessworld