Blackstone to pick up majority stake in Noida-Based R Systems International for $359 million; Stock Market Enthusiasts Take Note.

November 17 – Blackstone, an American private equity giant, announced that it would pick up a majority stake in R Systems International, a digital services firm, for $359 million or Rs. 2,904 crores.

Blackstone has reportedly signed definitive agreements with Satinder Singh Rekhi, the Managing Director and CEO of the company and other promoters of R Systems.

R Systems is a Noida-based leading provider of IT services specializing in product engineering; the company has more than 250 customers globally serving in technology, media, telecom and financial services. 

Founded in 1993 by Satinder Singh Rekhi, the company has over 4,400 employees in 18 delivery centres in North America, Europe, Asia Pacific, and India. 

Rekhi and other promoters presently hold a 52 per cent stake in R Systems, which Blackstone is said to acquire for Rs. 245 per share.

Rekhi is said to continue to guide the company in his new role as a non-executive advisor.

Blackstone is also said to launch a conditional delisting offer at a price of Rs. 246 per share.

R Systems has reported revenue in the 12 months ending September at Rs. 1,445 crores, which is a 36% year-on-year growth.

 

Blackstone Investment Theme – India

For Blackstone in India, IT/ITeS has been one of the most important investment themes for Blackstone.

Blackstone has already invested approximately $7 billion into Indian firms like Mphasis, VFS, TaskUs IBS software, Intelenet, and Simplilearn, among many others.

In 2022 alone, Blackstone had closed out VFS for $2 billion, ASK Wealth for $1 billion and $300 million in Xpressbees.

As a leading investment firm, Blackstone’s investment value stands at $954 billion globally.

R Systems Strong Financials 

Mukesh Mehta, a senior managing director at Blackstone, said that R Systems, a leader in outsourced software product development, is well-positioned to benefit from digitalization tailwinds and shorter product launch cycles as well as an increased openness to outsourcing product development.

According to Rekhi, the arrangement will undoubtedly take R Systems to the next level of growth, and the company’s employees, customers, as well as its partners, are set to gain immensely from the partnership with Blackstone.

BDA Partners were the financial advisor to the sellers of R Systems, while AZB & Partners acted as legal advisors to the sellers. 

KPMG, along with Cyril Amarchand Mangaldas and Simpson Thacher & Bartlett, were Blackstone’s advisors.

R Systems – Immense Growth Potential

R Systems International Ltd provides IT services and solutions. It is organized into two business segments, Information technology services and products and Business process outsourcing services. 

The company serves IT services and solutions to telecom and digital media, healthcare, manufacturing, government services, banking, and finance industries. 

It earns income from five principal geographic territories, namely North America, Europe, South East Asian countries (SEAC), India and others, of which the majority of revenue is derived from North America.

R Systems maintains 18 development and service centres to serve customers in North America, Europe, and APAC and operates more than 25 offices worldwide.

FAQs about R Systems Intnl share – A Good Buy 

1. What’s R Systems International’s share price today, and what are R     Systems Intnl share returns?

R Systems International’s share price was Rs 272.15 as on November 18, 2022, 10:30 AM IST. 

R Systems International’s share price was up by 0.42% based on the previous share price of Rs 235.05. 

2. R Systems Intnl share price trend:

-Last 1 Month: R Systems Intnl share price moved up by 16.31%

-Last 3 Months: R Systems Intnl share price moved up by 13.40%

-Last 12 Months: R Systems Intnl share price moved up 13.69%

– Last 3 Years: R Systems Intnl Share price moved up by 418.10%

3.What is the current market cap of R Systems International?

R Systems Intnl share has a market capitalization of Rs 3,206.02 Cr. Within the IT Software sector, its market cap rank is 25.

4. Who are peers to compare R Systems Intnl share price?

Within the IT Software sector R Systems Intnl, Black Box Ltd., Newgen Software Technologies Ltd., Genesys International Corporation Ltd., Accelya Solutions India Ltd., Datamatics Global Services Ltd., Cigniti Technologies Ltd., Subex Ltd., Zen Technologies Ltd., Sasken Technologies Ltd. and Expleo Solutions Ltd. are usually compared together by investors for analysis.

5. What is the 52-week high/low of R Systems Intnl share price?

In the last 52 weeks, R Systems Intnl share had a high price of Rs 354.95 and a low price of Rs 188.60

Conclusion: R Systems International has excellent financials to boast of. The company has a good track record in the stock markets with its share price trend for the last 3 Years: R Systems Intnl Share price increased by 418.10%.

With Blackstone announcing that it would pick up a majority stake in R Systems International, a digital services firm, for $359 million or Rs. 2,904 crores, it would give the company a further added advantage of great growth potential and an upward trajectory for its share price trend.