PE Fund Investments
Blackstone to acquire majority stake in IT services firm R Systems in $359-M deal
Press Release BSE Announcement
US-headquartered private equity firm Blackstone has signed definitive agreements with the promoters of Pune-based, publicly-listed R Systems International Ltd to purchase a majority stake in the IT Services company in a USD 359 million (INR 2,904 crore) deal. Satinder Singh Rekhi and the other promoters have agreed to sell their 51.67% stake (about 6.11 crore shares) in R Systems to Blackstone at INR 245 per share, aggregating to about INR 1,497 crore. Blackstone will make a delisting offer at a price of INR 246 per share to public shareholders for the remaining 48.33% stake (about 5.72 crore shares) in the company, aggregating to about INR 1,407 crore. R Systems, founded in 1993, specializes in product engineering, and serves over 250 customers in technology, media, telecom, and financial services sectors globally. It employs over 4,400 people across 18 delivery centers in North America, Europe, Asia Pacific, and India. R System's revenue for the twelve months ending September 2022, was INR 1,445 crore (~USD 189 million), registering a 36% year on year growth. BDA Partners acted as the financial advisor and AZB & Partners acted as legal advisor to the sellers. KPMG, Cyril Amarchand Mangaldas and Simpson Thacher & Bartlett acted as advisors to Blackstone. Kotak Mahindra Capital Company is managing the open offer to public shareholders.
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