Private Equity player Blackstone
has entered into a definitive agreement with Hewlett Packard Enterprise to buy
a majority stake in Mphasis. This deal represents the largest acquisition by
Blackstone in India. Based on the open offer subscription, the purchase price
consideration will vary between Rs 5466 crore and Rs 7071 crore.
HPE also signed a master services
agreement with Mphasis, committing business of $990 Million over a period of
five years. The Duration of MSA is five years with three automatic renewals of
two years each. Also, Mphasis will 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.
Mphasis has strong domain expertise
in banking, financial services, and insurance vertical. Its deep relationship
with marquee global consumers has enabled it to deliver growth above the
industry average in its direct international segment. The company has an
experienced management team who has a clear road map for company growth. With a
long term commitment of company largest customer, HPE are confident that
Mphasis will scale new heights.
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