India: NIIT Technologies Limited, a leading global IT solutions organization has announced that it has signed a definitive agreement for the sale of its entire 88.99% stake in ESRI India Technologies Ltd (Formerly NIIT GIS Ltd.) for consideration of Rs. 89.7 crores, Equity Bulls reported. ESRI India Technologies Ltd has been an exclusive distributor of ESRI Inc. cutting edge GIS products in India and has been supporting customers since 1996. The distribution agreement was expiring on 31st March 2019 and Esri Inc expressed its desire to directly manage the distribution of its products in India.
According to a report in Equity Bulls, “For many years Esri has partnered with NIIT Tech to advance the use of GIS software and capability for customers in India. Along with the recent establishment of our New Delhi R&D Center, this agreement confirms the importance of India as a market and our commitment to deliver value to customers in the country.” said Jack Dangermond, President Esri Inc.
Commenting on the transaction Arvind Thakur Vice Chairman & Managing Director, NIIT Technologies Ltd said, “The partnership of NIIT Tech with Esri Inc has helped develop the GIS market from scratch in India. Divestment of stake in ESRI India allows NIIT Tech to focus on its core verticals and global markets. Esri India customers will continue to have undivided attention and support from the same team and with direct support from Esri Inc.”.
The transaction is expected to close within this month.