Blackstone commits up to $2.8 billion to acquire controlling stake in Mphasis

Global investment firm Blackstone has declared that private equity funds managed by it have entered into definitive agreements to acquire a majority stake in IT solutions provider Mphasis. A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors will co-invest along with Blackstone.

The transaction will trigger a mandatory open offer for the purchase of up to 26 per cent additional shares of the company from the public shareholders and the acquiring entity has released a public announcement to the stock exchanges. Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 to Rs 1,497 per share (12 to 16 per cent premium to 12-month average price and 3 to 6 per cent discount to six-month average price) and the purchase consideration will vary between Rs 15,200 crore to Rs 21,000 crore (or about 2 billion to 2.8 billion dollars).

Mphasis is a global service provider, delivering technology based solutions across many sectors.