Private equity firms Brookfield Asset Management, Bain Capital, The Carlyle Group, and UK-based Permira have initiated due diligence for buying a controlling stake in Blackstone-backed tech firm Mphasis, reports said.
Blackstone’s 56.16% stake alone would be valued at $2.2 billion based on the company’s current market value. A sale will trigger an open offer for an additional 26%, which, if successful, can lead to the acquirer controlling more than 80% of the company in a deal that could cost about $3.1 billion. That would make it the largest technology deal in India to date.
Blackstone is looking to cash out of its largest investment in India to date after they invested about $1.1 billion in 2016. Blackstone increased their investment in the company after its share price fell more than one-third from its year-high in mid-March in a widespread market sell-off because of Covid-19.