Blackstone to buy a majority stake in Indian IT firm
Investment firm Blackstone is planning to buy a 52% stake in India-based IT services provider R Systems International, priced at $359 million.
According to Blackstone Senior Managing Director Mukesh Mehta, “R Systems is well-positioned to benefit from digitalization tailwinds, shorter product launch cycles, and increased openness to outsource product development.”
Blackstone will reportedly pay 245 rupees (US$3) per share of R Systems, a premium of around 4% to the closing price on Wednesday. The firm also stated that it would launch a conditional de-listing offer at 246 rupees (US$3.02) per share and was seeking regulatory approval from the Indian market regulator.
As of September 30, R System’s revenue is at ₹1,445 crores ($189 million), registering a year-on-year growth of 36%. Its shares shot up about 17% to 275.25 (US$3.38) rupees during the morning of November 17.
Satinder Singh Rekhi, R Systems Managing Director, CEO, and one of the promoters selling their stake, will serve as a non-executive advisor to Blackstone.
Related news
- TCS to create 1.2K jobs, extend STEM program in Illinois · 18 Nov
- 56% of APAC leaders lack long-term plans for hybrid work · 18 Nov
- Raya Contact Center’s profits dipped 61% in 2022 · 17 Nov
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
