Blackstone has acquired 56.7% of IT infrastructure management and BPO firm CMS Computers for Rs 190 crore, sources tell VCCircle. The deal values the Mumbai-based CMS at Rs 335 crore($68 million as per current exchange rates).
As per the deal, announced in December 2008 without details of the transaction, Blackstone was to partner CMS to form a new company by carving out the IT infrastructure management and outsourced business services divisions of CMS Computers. Blackstone was to hold a majority stake in this new company. Rajiv Kaul, former-CEO of Microsoft India was to be the CEO of the new firm. Some newsreports had indicated a figure of Rs 250 crore for the deal.
Upon conversion of the preference shares it would hold 56.7% in CMS. Founded in 1976 by IBM engineers Ramesh Grover, Varun Prasad and S Ramadorai, CMS is one of the top IT infrastructure management companies in India and commands market leadership in the outsourced business services segment.
CMS has more than 15,000 professionals world-wide across its various group companies. Its domestic IT services arm offers a range of solutions and services in different industry verticals in strategic IT consulting, networking, training, outsourcing, facility management, customising and implementing solutions, onsite service and support, and application management support.