Blackstone has bought a majority stake in IT solution provider CMS Computers for Rs 250 crore, reports Economic Times, citing investment bankers close to the deal as sources. 3i, Carlyle, TPG, and Standard Chartered and some other large private equity funds were also said to be in the race. An email sent to the private equity major to confirm the development, did not elicit any response till the time of writing this report.
It is not clear yet, which business of CMS has Blackstone invested in. Blackstone could be investing in the information technology and infrastructure management services business of CMS and can explore some synergies between Intelenet and CMS Computers. The private equity major completed the management buyout of Intelenet BPO from Barclays and HDFC for Rs 840 crore, last year. The company is also into other businesses such as education, security and traffic management. The valuation expected for the deal is $400 million. CMS has a significant presence in the domestic IT business.
CMS Computers has more than 8,000 employees and has presence in four regional centers with 20 branch offices, three research and development centers, three software development centers and numerous support engineers spread across 130 locations in the country.The company was founded by R D Grover, S Ramadorai and V Prasad in 1976.
This will be Blackstone’s second investment in the IT sector and the first concluded deal this year.
This will be Blackstone’s first deal this year in India. Blackstone has till now, invested in logistics firm Allcargo Logisitics, infrastructure and real estate firm Nagarjuna Constructions, Emcure Pharmaceuticals and defence equipment supplier MTAR Technologies. Its other buyout in India is garment exporter Gokaldas Exports.