Blackstone Plans To Take Majority Stake In This Indian Digital IT Provider For $359M

Blackstone Plans To Take Majority Stake In This Indian Digital IT Provider For $359M
  • Private equity funds managed by Blackstone Inc BX agreed to purchase a majority stake in R Systems International Limited from Satinder Singh Rekhi and other current promoters for $359 million (INR 2,904 crore).
  • Satinder Singh Rekhi and the other promoters currently hold ~52% stake in R Systems, which Blackstone will acquire for INR 245 per share. 
  • Blackstone will also launch a conditional delisting offer for INR 246 per share. 
  • Also Read: Blackstone Prices $1.5 Billion Senior Notes Offering
  • R Systems, founded in 1993 by Satinder Singh Rekhi, provides digital Information Technology services, specializing in product engineering, and serves over 250 customers in technology, media, telecom, and financial services sectors globally.
  • R System’s revenue for the last twelve months, as of September 30, 2022, was INR 1,445 crore (~$189 million), registering a 36% year-on-year growth.
  • R Systems employs over 4,400 people across 18 delivery centers in North America, Europe, Asia Pacific, and India.
  • Dr. Rekhi will continue to guide the company as a non-executive advisor.
  • Blackstone held $8.7 billion in cash and equivalents as of September 30.
  • Price Action: BX shares traded lower by 2.68% at $91.52 on the last check Thursday.

Posted In: BriefsEurasiaM&ANewsTech