US investment fund Blackstone Inc said on Thursday that it would buy a 52% stake in Indian IT services company R Systems International for $359 million (₹2,904 crore). Shares of R Systems rallied 15% to ₹268.70 apiece on the BSE in early trade on Thursday.
Private equity funds managed by Blackstone have signed definitive agreements with Satinder Singh Rekhi and other current promoters to purchase a majority stake in R Systems International Limited.
Satinder Singh Rekhi and the other promoters currently hold around 52% stake in R Systems, which Blackstone will acquire for ₹245 per share. Blackstone will also launch a conditional delisting offer, at a price of ₹246 per share.
The transaction is expected to be completed in the coming months, subject to customary closing conditions and regulatory approvals. Dr. Rekhi will continue to guide the company in his role as a non-executive advisor.
"R Systems is well-positioned to benefit from digitalization tailwinds, shorter product launch cycles and increased openness to outsource product development," Blackstone Senior Managing Director Mukesh Mehta said in a statement.
BDA Partners acted as the financial advisor to the sellers of R Systems. AZB & Partners acted as legal advisor to the sellers. KPMG, Cyril Amarchand Mangaldas and Simpson Thacher & Bartlett acted as advisors to Blackstone.
R Systems, founded in 1993 by Satinder Singh Rekhi, R Systems is a one of the leading providers of Information Technology services, specializing in digital product engineering. The firm partners with customers to enable their digital transformation with diversified digital offerings. Services and solutions span over five major business verticals i.e. technology, media, telecom and financial services.
The firm maintains 18 development and service centers to serve customers in North America, Europe, and APAC. R System’s revenue for the last twelve months, as of September 30, 2022, was ₹1,445 crore, registering a 36% year on year growth.
