On November 17 in a statement, Blackstone which is an American private equity giant announced that they will acquire a 52% stake in R System International, a digital information technology service provider for $359 million (Rs 2,904 crore). It has signed agreements with Satinder Singh Rekhi who is a founder and CEO of R System and other promoters of the company.
After Blackstime’s open offer for a 48.33% stake at Rs 245 per share, the stocks of R System moved up by nearly 18%.
Blackstone will also set up a conditional delisting proposal for Rs 246 per share, according to their statement. The transaction for the deal is anticipated to complete in the coming month, subject to customary closing conditions and regulatory approvals.
“I am excited that our partnership with Blackstone will take R Systems on the path to its next level of growth … the company’s management team will be excited to welcome Blackstone and benefit from their scale, expertise, and global track record in IT services,” said Satinder Singh Rekhi, chief executive officer of R Systems.
Mukesh Mehta, a senior managing director at Blackstone, said as a “leader in outsourced software product development, R Systems, is well-positioned to benefit from digitalization tailwinds, shorter product launch cycles and increased openness to outsource product development.”
“This investment follows our long-standing conviction in IT services and builds on our track record in the sector globally,” he said.
It can be commented that IT/ITeS has been one of the powerful investment theses for Blackstone in the nation and it has pumped in around USD 7 billion into domestic companies like Mphasis, VFS, TaskUs IBS software, Intelenet, and Simplilearn among others.
In 2022, Blackstone removed VFS for USD 2 billion, ASK Wealth for USD 1 billion, and USD 300 million in Xpressbees.
About R System:
R System is based in Noida. It is one of the leading digital information technology service providers which has served over 250 clients globally including various types of a company like technology, media, telecom, and financial services sectors. It was founded by Satinder Singh Rekhi in 1993. Satinder Singh is also the Chief Executive Officer of R System while the Chief Financial Officer is Nand Sardana. It has subsidiaries like R System International and its headquarters is situated in El Dorado country, California, United States. It has a workforce of about 4,400 people across North America, Europe, Asia Pacific, and India. The company generated revenue of Rs 1,445 Crore in 12 months ending in September and it noted 35% year-on-year growth.
