NIIT Technologies has said it will sell its entire 88.99 per cent in ESRI India Technologies and buy Hyderabad-based WHISHWORKS IT Consulting, an IT services and consulting company specialising in MuleSoft and Big Data technologies. ESRI is a US-based geographic information system-based company, which makes mapping and location-based software products. NIIT Tech had a distribution deal with the firm, which was expiring on March 31. ESRI will now directly manage the distribution of its products in India. The transaction is expected to close within this month.
In WHISHWORKS, which is an all-cash transaction, funded through internal accruals, NIIT Tech will initially buy a 53 per cent stake, with the remaining equity to be acquired over the next two years through pay-outs linked to financial performance.
This transaction is expected to add to margin and earnings of NIIT Tech. The deal closure is subject to government and regulatory approvals.
Source: Business-Standard