Nihilent promoter LC Singh buys out 69% controlling stake from NTT in a leveraged buy out

The new year begins with positive developments in India's IT landscape with Nihilent Limited, a global consulting and services company, announcing a leveraged buyout of the controlling stake by its Founder & Promoter, LC Singh from NTT Ltd.

With the acquisition, Nihilent will become a management-owned entity. The 69.16% buyout was facilitated using debt financing from a consortium of leading funds, namely ICICI Prudential Corporate Credit Opportunities Fund AIF-I of ICICI Prudential Alternate Investments and Piramal Structured Credit Opportunities Fund, the Performing Credit fund managed by Piramal Alternatives Private Limited. While the exact deal size was not disclosed, in 2022, NTT was seeking a valuation for Nihilent at around Rs 2,500 crore ($314 million then).

The acquisition of the controlling stake aligns with Nihilent's strategic vision and commitment to enhancing its market presence, taking its IPs & products to market, strategic expansion of its current capabilities, and ramping up its offering in AI, ML, XR & Generative AI. The remaining stake continues to be held by promoter's family, Nihilent's top management executives and employees. It also has a pool for employee stock ownership plans (ESOPs) of roughly 6.5% available for its employees. The company sees a compounded growth of around 25% in the next 3-5 years.

Incepted in 2000 by industry veteran LC Singh, Nihilent is a global consulting and services company that uses a human-centric approach to problem-solving and change management. The company has a presence in South Africa, India, USA, Sweden, UK and Australia.