On November 17, Private equity firm Blackstone announced in a statement that it would acquire a 52% stake in digital information technology service provider R Systems International for Rs 2,904 crore ($359 million).

Shares of R Systems soared nearly 18% after Blackstone made an open bid for a 48.33% stake at Rs 245 per share.
It will also make a conditional delisting offer at Rs 246 per share, Blackstone said in a statement. The transaction is expected to close in the coming months, subject to customary closing conditions and regulatory approvals.

Blackstone is buying the promoter’s stake at Rs 245 per share, a premium of 3.9% over the current price of Rs 235.8 per share. Promoters will get a 52% stake of about Rs 1,496.95 crore.

Blackstone said in a statement that Rekhi would continue to guide the company as a non-executive advisor. Founded by Rekhi in 1993, R Systems specialises in digital information technology services, with a focus on product engineering, serving more than 250 clients worldwide in technology, media, telecommunications and financial services. The company has more than 4,400 employees across 18 delivery centres in North America, Europe, Asia Pacific and India. R System’s revenue for the trailing 12 months ended September 30, 2022, stood at Rs 1,445 crore ($189 million), up 36% YoY.

BDA Partners acted as financial advisor to the R Systems seller. AZB & Partners served as legal counsel to the seller. KPMG, Cyril Amarchand Mangaldas and Simpson Thacher & Bartlett are Blackstone’s advisors.