April 12, 2016 7:40 pm | Updated 5 years ago.
The Blackstone Group, an US asset management company stepped into the Indian market for the first time by acquiring the Indian IT outsourcing service provider Mphasis Ltd from HPE (Hewlett Packard Enterprise). The deal between HPE and the Blackstone Group is worth $1.1 billion.
Blackstone is thinking of leveraging the fact that India’s IT sector will maintain its growth in double digits in the near future. Moreover, it also plans to utilize Mphasis’s strong foothold in the field of digital services. To complete the deal, Blackstone will be paying Rs 430 /share to buy about 84% of the stake held by HPE in Mphasis. It also plans to make an open offer to purchase 26% of shares in Mphasis from public shareholders.
The entire deal will cost Blackstone Group $1.1 billion and HPE will receive $825 million for its stake in Mphasis and also guaranteed that HPE continues on maintaining a commercial partnership with it.
Date of Publication: April 04,2016