Blackstone to acquire Mphasis

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.

Filipino BPO, Blackstone to acquire Serco India

Private equity giant Blackstone and Filipino BPO Company SPi Global remain in race for buying London listed Serco’s Indian BPO Unit.  The deal is said to be in the range of $400 Million. Formerly known as Intelenet, it had been sold by Blackstone to Serco for $634 Million in 2011. Out of both companies, only one company will win the bid to acquire Serco BPO Unit.

Intelenet was set up in 2000 as a 50-50 venture between HDFC and TCS. In 2004, HDFC acquired TCS stake for 160 crore to sell it to Barclays later. In 2007, Blackstone bought an 80 percent stake in Intelenet for about $260 Million. When it sold Intelenet in 2011, Blackstone had a 66 percent stake and rest was divided among Barclays, HDFC and the management team. Blackstone had managed to get more than a 60 percent return on its four year investment.

Serco had announced the future strategy of the company would be to focus on being a Business to government service provider across five core areas and four key regions. SPi Global, a leading diversified BPO service provider in Philippines operates on offshore based model primarily serving US and Europe Customers with more than 20,000 employees across 17 delivery locations in six countries, including India, US, China, Vietnam, and Nicaragua.

In April 2012, Serco Group had bought all its BPO assets together to create Serco Global Services. Serco BPO operation is largest in India after Genpact and TCS.