Blackstone to become majority stakeholder in R Systems in $359m deal

TAGS

American alternative asset manager Blackstone said that private equity funds managed by it will acquire a majority stake in R Systems International, an Indian digital information technology (IT) services provider, for INR 245 per share or $359 million (INR 2,904 crores).

In this connection, a deal has been signed with Satinder Singh Rekhi and other current promoters of the Indian IT firm.

Satinder Singh Rekhi founded R Systems in 1993 and alongside other promoters holds a combined stake of around 52% stake. The company is said to specialize in product engineering, and caters to more than 250 clients in technology, telecom, media, and financial services sectors around the world.

R Systems has a workforce of more than 4,400 people spread over 18 delivery centers in North America, Asia Pacific, Europe, and India.

Its revenue for the last 12 months, as of 30 September 2022, was INR 1,445 crores ($189 million).

Satinder Singh Rekhi — R Systems CEO said: “I am excited that our partnership with Blackstone will take R Systems on the path to its next level of growth. Today, R Systems is a well-known product engineering brand that attracts top-notch talent looking to work on cutting-edge solutions for our global clients.

“The company’s management team will be excited to welcome Blackstone and benefit from their scale, expertise, and global track record in IT services. Our employees, customers, and partners will gain immensely from this partnership with Blackstone.

Satinder Singh Rekhi will serve R Systems as a non-executive advisor following the closing of the deal.

Blackstone said that it will also initiate a conditional delisting offer, at a price of INR 246 per R Systems share. Currently, R Systems is listed on the National Stock Exchange of India (NSE).

Mukesh Mehta — Blackstone Senior Managing Director said: “R Systems has been a reliable long-term partner to marquee global customers, guiding them on their digital transformation journeys. Their domain knowledge, service quality and global delivery centers make them a partner of choice for their customers.

“As a leader in outsourced software product development, R Systems is well-positioned to benefit from digitalization tailwinds, shorter product launch cycles and increased openness to outsource product development.”

The deal, which is subject to customary closing conditions and regulatory approvals, is likely to close in the coming months.

CATEGORIES
TAGS
Share This

COMMENTS

Wordpress (0)
Disqus ( )