Funds managed by Blackstone will acquire a majority stake in IT services company Mphasis for more than $2 billion.
A subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other investors will co-invest along with Blackstone.
Mphasis said the company is witnessing strong momentum on new business wins and has delivered its highest‐ever quarterly Total Contract Value (TCV) wins in each of the last three quarters: Direct TCV wins have increased 64 per cent y-o-y for the nine-month period ending December 31, 2020.
This transaction will trigger a mandatory open offer for the purchase of up to 26 percent additional shares of the company from the public shareholders. The purchase consideration will vary between $2 billion to $2.8 billion.
A different fund managed by Blackstone had acquired a controlling stake in Mphasis from Hewlett Packard Enterprise in September 2016.
The sale is expected to complete in the coming months, subject to customary closing conditions and regulatory approvals.