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

Global private equity major Blackstone on Monday said funds managed by the PE firm have entered into a definitive agreement to buy a majority stake in Bengaluru-based mid-tier IT services firm, Mphasis Limited.

The company has committed to invest up to $2.8 billion (Rs 21,000 crore) for the deal. As part of the deal, it has made an open offer to acquire an additional 26% stake in the firm for Rs 8,262 crore (around $1.10 billion).

A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments (Office of the Chief Investment Officer of The Regents, University of California), and GIC will co-invest along with Blackstone.

The offer price is fixed at Rs 1,677.16 per share, which is around 3% less than the market price of Mphasis’ shares on Monday.