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Blackstone buys stake in Ramesh Grover founded CMS Computers
By siliconindia
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Bangalore: U.S. based private equity firm The Blackstone Group has bought a majority stake in the IT Infrastructure Management and Outsourced Business Services divisions (comprising card solutions, transaction printing solutions and ATM cash management) of Ramesh Grover founded CMS Computers. The size of the deal is reportedly said to be around 
250 crore.
Apart from the Blackstone's majority representation, the Grover family and other promoters will hold substantial minority stake in the India based company. Though the current economic meltdown has taken its toll on IT companies, CMS Computers is much better off as it has a domestic client base with many of them being government companies and PSU's, which allow the company to have predictable cash flows. The company has also appointed Microsoft India's ex-CEO Rajiv Kaul as the Executive Vice Chairman and CEO, who was working as a partner with Actis Capital.
The stake buyout will be the first deal for the Blackstone in India this year and the second in the IT/ ITeS space in India. The private equity major completed the management buyout of Intelenet BPO from Barclays and HDFC for Rs 840 crore, last year. In India, it was also engaged in the buyout of the garment exporter Gokaldas Exports .
Founded in 1976 by Grover along with Varun Prasad and Ramadorai, the company employs 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.
250 crore.
Apart from the Blackstone's majority representation, the Grover family and other promoters will hold substantial minority stake in the India based company. Though the current economic meltdown has taken its toll on IT companies, CMS Computers is much better off as it has a domestic client base with many of them being government companies and PSU's, which allow the company to have predictable cash flows. The company has also appointed Microsoft India's ex-CEO Rajiv Kaul as the Executive Vice Chairman and CEO, who was working as a partner with Actis Capital.
The stake buyout will be the first deal for the Blackstone in India this year and the second in the IT/ ITeS space in India. The private equity major completed the management buyout of Intelenet BPO from Barclays and HDFC for Rs 840 crore, last year. In India, it was also engaged in the buyout of the garment exporter Gokaldas Exports .
Founded in 1976 by Grover along with Varun Prasad and Ramadorai, the company employs 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.