Blackstone on Monday announced that private equity funds managed by Blackstone have entered into definitive agreements to acquire a majority stake in Mphasis Limited. A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments, and other long-term investors will co-invest along with Blackstone.

Blackstone has committed up to $2.8 billion to acquire a controlling stake in Mphasis. The transaction will trigger an open offer for the acquisition of up to 26 per cent stake at a price of Rs 1,677.16 per share.

The sale is expected to complete in the coming months, subject to customary closing conditions and regulatory approvals.

Mphasis is one of the leading providers of Information Technology services specialising in cloud and digital solutions. It has deep domain expertise in the Banking, Financial Services, and Insurance sectors (BFSI) and serves 35 of the top 50 US BFSI firms. Mphasis is witnessing strong momentum on new business wins and has delivered its highest‐ever quarterly Total Contract Value (TCV) wins in each of the last three quarters: Direct TCV wins have increased 64 per cent YoY for the nine-month period ending December 31, 2020, the company said in a statement.

This transaction will trigger a mandatory open offer for the purchase of up to 26 per cent additional shares of the company from the public shareholders and the acquiring entity has released a public announcement to the stock exchanges.

Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 to Rs 1,497 per share (12-16% premium to 12-month average price and 3-6% discount to 6-month average price) and the purchase consideration will vary between Rs 15,200 crore to Rs 21,000 crore (or, approximately $2.0 billion to $2.8 billion). A different fund managed by Blackstone had acquired a controlling stake in Mphasis from Hewlett Packard Enterprise (NYSE: HPE) in September 2016.