R Systems’ stock will delist when Blackstone takes a majority stake in the company
- ByStartupStory | November 17, 2022
Blackstone Inc., a US investment firm, announced on Thursday that it will pay $359 million (2,904 crores) to acquire a 52% share in the Indian IT services firm R Systems International. In the opening hours of trading on Thursday, shares of R Systems rose 15% to $268.70 a share on the BSE.
Definitive agreements for the purchase of a majority stake in R Systems International Limited have been signed by Satinder Singh Rekhi and other current promoters by private equity funds managed by Blackstone. R Systems, which Blackstone will purchase for $245 per share, currently has a 52% stake held by Satinder Singh Rekhi and the other promoters. A conditional delisting offer will also be made by Blackstone at a price of $246 per share.
In the upcoming months, the acquisition is anticipated to close, pending customary closing requirements and regulatory clearances. As a non-executive advisor, Dr Rekhi will continue to direct the business. Blackstone Senior Managing Director Mukesh Mehta stated in a statement that “R Systems is well-positioned to benefit from digitalization tailwinds, shorter product launch cycles, and increased openness to outsource product development.” The financial adviser to the R Systems sellers was BDA Partners. The sellers’ legal counsel was provided by AZB & Partners. Blackstone received advice from KPMG, Cyril Amarchand Mangaldas, and Simpson Thacher & Bartlett.
Satinder Singh Rekhi started R Systems in 1993. Specializing in digital product engineering, R Systems is one of the top providers of information technology services. With a variety of digital products, the company collaborates with customers to support their digital transformation. The five main business sectors of technology, media, telecom, and financial services are all covered by services and solutions. To serve its clients in North America, Europe, and Asia-Pacific, the company maintains 18 development and service centres. R System’s annual revenue as of September 30, 2022, was $1,445 crore, representing a 36% year-over-year increase.
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