Blackstone Group has announced that it is buying Hewlett Packard Enterprise Co.’s majority stake in Indian outsourcing firm Mphasis Ltd. This deal represents the largest acquisition by Blackstone in India. Based on the open offer subscription, the purchase price consideration will vary between Rs 5,466 crore and Rs 7,071 crore (or approximately $825 million – $1.1 billion).
Blackstone said in the statement that the acquisition should be completed in the “coming months, subject to customary closing conditions and approvals. HPE also signed a master services agreement (MSA) with Mphasis, committing business of $990 million over a period of five years. The duration of the MSA is five years with three automatic renewals of two years each.
Mphasis will also be included in HPE’s Preferred Provider Program, opening up significant additional revenue opportunities. HPE currently owns 60.5% of Mphasis. Blackstone will pay a purchase price of Rs 430 per share to HPE.
According to the Takeover Code in India, this transaction will trigger a mandatory open offer for a purchase of additional 26% shares of the company and the acquiring entity has released a public announcement to the stock exchanges.
Mphasis’ last twelve months revenue as of December 31, 2015, was Rs 59,996 million ($904 million) and profit after tax was Rs 6,923 million ($104 million). It has deep vertical expertise in the Banking, financial services and Insurance (BFSI) sector and strong portfolio focus on new generation services including digital solutions.
Mphasis serves customers across the globe, including 6 top global banks, 11 out of 15 top mortgage lenders, and 3 top global insurance companies. The company has roughly 24,000 employees across 16 countries.
Extra Info :
Blackstone MD in India : Amit Dixit
Mphasis Founder : Jerry Rao
Mphasis CEO : Ganesh Ayyar
Mphasis Headquarter : Bangalore
So lets discuss some questions related to this article :
1. Name the company which has acquired Mphasis ?
2. The Blackstone group has acquired how much % HP’s stake in Mphasis ?
3. Where is the headquarter of Mphasis ?
Courtesy : Business Standard