Blackstone commits up to $359m to acquire majority stake in R Systems

Private equity funds managed by Blackstone have signed definitive agreements with Satinder Singh Rekhi and other current promoters to purchase a majority stake in R Systems International Limited (R Systems) for up to $359m.

Satinder Singh Rekhi and the other promoters currently hold ~52% stake in R Systems, which Blackstone will acquire for INR 245 per share. Blackstone, which you can meet at the Switzerland Private Equity Conference, will also launch a conditional delisting offer, at a price of INR 246 per share. The transaction is expected to be completed in the coming months, subject to customary closing conditions and regulatory approvals. Rekhi will continue to guide the company in his role as a non-executive advisor.

R System’s revenue for the last twelve months, as of September 30, 2022, was ~$189 million, representing year-on-year growth of 36%.

BDA Partners acted as the financial advisor to the sellers of R Systems. AZB & Partners acted as legal advisor to the sellers. KPMG, Cyril Amarchand Mangaldas and Simpson Thacher & Bartlett acted as advisors to Blackstone.

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R Systems, founded in 1993 by Satinder Singh Rekhi, is a provider of digital Information Technology services, specialising in product engineering, and serves over 250 customers in technology, media, telecom, and financial services sectors globally.

R Systems is a partner of choice for enterprise customers with a strong suite of capabilities in product engineering, artificial intelligence, data analytics, internet of things, robotic process automation and cloud, employing over 4,400 people across 18 delivery centres in North America, Europe, Asia Pacific, and India.

Source: Private Equity Wire

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