R Systems International soared 15.68% to Rs 271.15 after the global investment firm Blackstone acquired a majority stake in the company for $359 million (Rs 2,904 crore).
The private equity funds managed by Blackstone have signed definitive agreements with Satinder Singh Rekhi and other current promoters to purchase a majority stake in R Systems.R Systems, founded in 1993 by Satinder Singh Rekhi, is one of the leading providers of digital Information Technology services, specializing in product engineering, and serves over 250 customers in technology, media, telecom, and financial services sectors globally.
Satinder Singh Rekhi and the other promoters currently hold around 52% stake in R Systems, which Blackstone will acquire for Rs 245 per share. Blackstone will also launch a conditional delisting offer, at a price of Rs 246 per share. The transaction is expected to be completed in the coming months, subject to customary closing conditions and regulatory approvals. Dr. Rekhi will continue to guide the company in his role as a non-executive advisor.
Blackstone has launched an open offer for acquisition of up to 5,71,73,476 fully paid-up equity shares of face value of Re 1 each, representing 48.33% of the voting share capital of target company from all the public shareholders of the target company at an offer price of Rs 246 by BCP Asia II Topco II . (acquirer) along with Blackstone Capital Partners Asia II L.P (PAC).
The offer is being made to all the public shareholders for the substantial acquisition of shares, voting rights and control over the target company by acquirer in accordance with and subject to the terms of the share purchase agreement (SPA) entered by acquirer with the sellers on 16 November 2022.
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Mukesh Mehta, senior managing director at Blackstone said, R Systems is well-positioned to benefit from digitalization tailwinds, shorter product launch cycles and increased openness to outsource product development. This investment follows Blackstone's long-standing conviction in IT services and builds on the firm's robust track record in the sector globally. We are excited to partner with the current management team to support the company's next phase of growth, both organically and through strategic acquisitions.
Satinder Singh Rekhi, CEO of R Systems, said: The company's management team will be excited to welcome Blackstone and benefit from their scale, expertise, and global track record in IT services. Our employees, customers, and partners will gain immensely from this partnership with Blackstone. I am happy for my new role as an advisor to the company under Blackstone's ownership.
R Systems is a one of the leading providers of information technology services, specializing in digital product engineering. The firm partners with customers to enable or elevate their digital transformation with diversified digital offerings. Its services and solutions span over five major business verticals i.e. technology, media, telecom and financial services.
The company reported 2.2% decline in consolidated net profit to Rs 36.79 crore despite of 30.2% rise in net sales to Rs 398.24 crore in Q3 2022 over Q3 2021.
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