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.
VCCircle now learns that Blackstone has struck the deal at Rs 190 crore. The transaction involves Blackstone subscribing to 95.9 million compulsorily convertible and cumulative preference shares of Rs 1 each at a premium of Rs 18.8 besides a nominal 100 equity shares of CMS.
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.