BENGALURU: US private equity giant
Blackstone
, along with the UAE’s Abu Dhabi Investment Authority (
ADIA
) and UC Investments, will buy a controlling stake in Bengaluru-based IT services firm Mphasis for $2.8 billion. UC Investments manages the funds of
University of California
.
Another fund of Blackstone’s had in 2016 bought a 60.5% stake in the company from
Hewlett Packard Enterprise
(
HPE
) at Rs 430 per share, betting on the growth in India’s IT landscape.
“Mphasis is exceptionally well-positioned given a terrific management team, strong order backlog, long-term strategic customer base, deep domain expertise in financial services, and a world-class suite of cloud and digital offerings,” said Amit Dixit, cohead of Asia acquisitions and head of India for Blackstone private equity.
The current proposal will trigger a mandatory open offer for the purchase of up to 26% additional shares of Mphasis from public shareholders. Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 and Rs 1,497 per share, which is a 12-16% premium to the company’s 12-month average price.
“We believe Blackstone’s sustained strategic partnership will help the company accelerate its growth and scale new heights,” said Mphasis CEO
Nitin Rakesh
.
Mphasis reported a constant currency growth of 4.3% in the third quarter compared to a year earlier, while its new total contract value wins were $247 million.
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