Blackstone has announced that private equity funds managed by Blackstone have entered into definitive agreements to acquire a majority stake in Mphasis Limited. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors will co-invest along with Blackstone.
Mphasis is a provider of Information Technology services specializing in cloud and digital solutions. It has domain expertise in the Banking, Financial Services and Insurance sectors (BFSI) and serves 35 of the 50 US BFSI firms. Mphasis also has long-term relationships with multiple marquee global customers.
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.”
Nitin Rakesh, CEO and Executive Director of Mphasis said, “We are gratified to continue our partnership with Blackstone, both as a leading investor as well as our client. We believe Blackstone’s sustained strategic partnership will help the company accelerate its growth and scale new heights. Sovereign and pension funds co-investing is a testimony of long-term commitment and a vote of confidence of a marquee set of shareholders.”
Satish Swamy, Senior Managing Director Asia and Global Rates, UC Investments (The Regents of the University of California), said, “Blackstone has an exceptional team and franchise in India. An ownership mindset with a business building approach has led to many successful investments including its flagship investment in Mphasis. We have known the company and the management team for a few years and are delighted to now become investors. At UC Investments, we invest as partners with a long-term mindset in companies with secular tailwinds — Mphasis perfectly fits that bill.”
The sale is expected to complete in the coming months, subject to customary closing conditions and regulatory approvals.
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.