You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Mphasis spurts as Blackstone, ADIA, UC Investments to acquire controlling stake

Capital Market 

Mphasis jumped 4.04% to Rs 1766.25 as private equity funds managed by Blackstone Group Inc. have entered into definitive agreements to acquire a majority stake in the Indian IT outsourcing services provider.

A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments (Office of the Chief Investment Officer of The Regents, University of California) and others will co-invest along with Blackstone.

This transaction has triggered a mandatory open offer for the purchase of up to 26% additional shares of Mphasis from the public shareholders.

BCP Topco IX (the acquirer) along with Blackstone Capital Partners Asia NQ L.P. (PAC 1) and Blackstone Capital Partners (CYM) VIII AIV - F L.P. (PAC 2) have announced an open offer for acquisition of up to 4,92,63,203 equity shares from the public shareholders of Mphasis, representing 26% of the expanded voting share capital, at a price of Rs 1,677.16 per equity share aggregating to total consideration of Rs 8,262.22 crore payable in cash.

Amit Dixit, Co-Head of Asia Acquisitions and Head of India for Blackstone Private Equity, said: "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. This investment enables us to continue creating value for the long term with continuity in the management team and the board, and provide additional resources to further accelerate the company's growth momentum. We are grateful to Mphasis' customers, investors, employees and board for their continued support."

Blackstone bought a 60.5% stake in Mphasis from Hewlett Packard Enterprise Co. in 2016 at Rs 430 per share.

As on 31 March 2021, Marble II, a unit owned by PE firm Blackstone, held 56.03% stake in Mphasis.

Mphasis applies next-generation technology to help enterprises transform businesses globally. The IT company reported 8.8% rise in consolidated net profit to Rs 325.53 crore on a 1.6% increase in net sales to Rs 2474.39 crore in Q3 FY21 over Q2 FY21.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, April 26 2021. 11:09 IST