Global firm Blackstone has acquired a majority stake in R Systems International Limited for $359 million (Rs 2,904 crore), said a Blackstone statement. R Systems is a leading provider of Information Technology services, specializing in digital product engineering.
Blackstone has acquired the stake from founder Satinder Singh Rekhi and other current promoters.
Founded in 1993 by Satinder Singh Rekhi, R Systems serves over 250 customers in the technology, media, telecom, and financial services sectors globally.
R Systems, with a presence in product engineering, artificial intelligence, data analytics, internet of things, robotic process automation and cloud, employs over 4,400 people across 18 delivery centers in North America, Europe, Asia Pacific, and India.
Satinder Singh Rekhi and the other promoters currently hold 52% stake in R Systems, which Blackstone will acquire for Rs 245 per share. Blackstone will also launch a conditional delisting offer, at a price of Rs 246 per share.
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 Rs 1,445 crore ($189 mm), registering a 36% year-on-year growth, added the statement.
“As a leader in outsourced software product development, R Systems is well-positioned to benefit from digitalization tailwinds, shorter product launch cycles and increased openness to outsource product development. This investment follows Blackstone’s long-standing conviction in IT services and builds on the firm’s robust track record in the sector globally,” said Mukesh Mehta, Senior Managing Director at Blackstone.
“Today, R Systems is a well-known product engineering brand that attracts top-notch talent looking to work on cutting-edge solutions for our global clients. The company’s management team will be excited to welcome Blackstone and benefit from their scale, expertise, and global track record in IT services,” said Satinder Singh Rekhi, CEO of R Systems.
