Blackstone India will acquire HP's 60.5 per cent stake in the company at Rs 430 apiece, which will trigger an open offer for acquiring 26 per cent from other shareholders of Mphasis, for which it has announced a price of Rs 457.50 a share.
Depending on the outcome of the open offer, the US based asset manager will pay anything between Rs 5,466 crore and Rs 7,071 crore for taking control of the IT company.
At present, HP accounts for over 27 per cent of the revenue, which is slated to touch USD 1 billion this fiscal for the Bengaluru-headquartered company, he said.
Mphasis has reduced its dependence on HP's business (from 65 per cent contribution to revenues some five years ago to 34 per cent in 2014-15). Also, non-HP business has been growing at 20 per cent year-on-year.
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Announcement of the transaction after signing of a definitive agreement between the two parties ends speculation over the suitor for the IT exporter, which was put on the block by Hewlett Packard (HP) Enterprise.
India's Fifth largest IT company Tech Mahindra and private equity fund Apollo Global Management were also in the race.
Dixit said Blackstone's global portfolio companies have
revenue of over USD 86 billion, presenting a potential spend of over USD 5 billion per year.
Citing how Intelenet benefitted from this in the past, he said all the bidding for investee company's IT contracts will be done at an "arm's length" by Mphasis.
Mphasis' focus on the lucrative banking, financial services and insurance vertical, retention of clients including the top-billing ones and the strong performance in the emerging digital space were big positives, he said.
There will be more investments in the digital side, including additional hiring and Mphasis may also look for strategic acquisitions of small-sized players to help the business, the senior managing director added.
He also counted on Mphasis' delivery capabilities and client satisfaction which was established independently during due diligence as critical factors which prompted Blackstone to go for the company.
"All these things give the business a stability, predictability and growth opportunity," he said.
(REOPENS BCM 8)
"The excitement is there in me personally, in my team, employees to whom we have spoken and we feel this can set up a platform for accelerated growth, stability and predictability," Mphasis CEO Ganesh Ayyar said.
He further said: "At this point of time, if you are asking me whether I have committed my life to any such transaction saying that I'm going to stay for X number of years, the answer is no. But is there a risk that I'm going to jump the ship, absolutely not. I have never done that in my career, so I'm not going to change that when I'm 54 years old."
"Ever since its acquisition by EDS and then with HP acquiring EDS, Mphasis went into oblivion. Although, it always had its own legal identity with its own business and go-to-market, however it never was able to establish itself as a visible and credible provider beyond the fact that it was an HP entity," he said.
Roy added that the buyout would give Mphasis an opportunity to come back into the mainstream IT services as "a force to reckon with".
"Moreover, Blackstone portfolio companies could in itself be an opportunity to mine," he said.
"While HPE's decision to exit its equity position in Mphasis aligns with its current capital allocation priorities, the agreement is not expected to have any adverse impact on HPE's ongoing commercial relationship with the company," it added.
HPE said the transaction is expected to close in the second half of fiscal 2016, subject to agreed closing conditions.
"While our financial relationship is changing, the business and commercial relationship with Mphasis remains an important part of our service delivery strategy," HPE Enterprise Services EVP and GM Mike Nefkens said.