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.
