Separator

Mphasis to be Acquired by Blackstone, ADIA & UC Investments for up to $2.8 Billion

Separator
Private equity firm Blackstone along with a unit of Abu Dhabi Investment Authority (ADIA) and UC Investments will spend as much as $2.8 billion to acquire a majority stake in Mphasis Ltd.

The Blackstone Group Inc., based in New York City, is an American multinational private equity, alternative asset management, and financial services firm founded in 1985. Blackstone is the world's largest alternative investment company, specialising in private equity, credit, and hedge fund investment strategies.

In September 2016, a separate Blackstone fund purchased a controlling stake in Mphasis from Hewlett Packard Enterprise.

Mphasis Limited is an Indian IT services firm headquartered in Bangalore. Infrastructure technology and application outsourcing, as well as design advice, application creation and integration, and application management are all services provided by the company.

According to the company, the transaction will trigger a mandatory open offer for the purchase of up to 26 percent more shares of the company from public shareholders, and the acquiring entity has made a public announcement to stock exchanges.

The blended selling price will range from Rs 1,452 to Rs 1,497 per share, depending on the open bid subscription (12-16 percent premium to 12-month average price and 3-6 percent discount to 6-month average price), and the purchase consideration will range from Rs 15200 crore to Rs 21000 crore (roughly $2.0 billion to $2.8 billion).

“Information technology and software services have been strong sectors for value creation for the last two decades. Mphasis is backed by strong secular tailwinds as global enterprises increasingly migrate to the cloud. The company 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," Amit Dixit, Co-Head of Asia Acquisitions and Head of India for Blackstone Private Equity, said in a statement.