From InfoWorld: Hewlett Packard Enterprise is to sell its majority stake in Indian IT services provider Mphasis to Blackstone Group, in a deal that will help the Palo Alto, California, company raise capital as well as continue to get services delivered from India.
HPE said the purchase by Blackstone of its shares at rupees 430 ($6.5) a share values its 60.5 percent stake at about $825 million.
Under the agreement announced late Sunday, HPE will continue to have services delivered to it and its clients under an existing customer agreement that it plans to extend for another five years.
HP business accounted for 24 percent of the Indian company’s total revenue of rupees 15 billion in the fourth quarter. The company had 23,512 staff at the end of the quarter, delivering both business process outsourcing and IT services.
Mphasis, a company listed on Indian stock exchanges, was a subsidiary of Electronic Data Systems from June 2006, after EDS acquired a majority stake in the Indian outsourcer. The Indian company became a subsidiary of HP, after parent company EDS became a wholly owned subsidiary of HP in 2008.
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