Monday, April 4, 2016

HPE Sells its Stake in Mphasis - IT Services Arm in Bangalore

Hewlett Packard Enterprise will sell its equity stake in Mphasis Limited, an IT services provider in Bangalore, to private equity funds managed by The Blackstone Group, for US$825 million.  Specifically, Blackstone will purchase at least 84% of HPE's stake in Mphasis for INR 430 per share. Blackstone will purchase the maximum amount of the remaining 16% stake that is permitted by Indian securities laws and subject to the outcome of a mandatory tender offer between signing and closing.

"While our financial relationship is changing, the business and commercial relationship with Mphasis remains an important part of our service delivery strategy," said Mike Nefkens, EVP and GM of HPE Enterprise Services. "We remain committed to our strategic partnership with Mphasis and to providing our customers with the high level of service and support they expect from HPE."

In fiscal year 2015, HPE recognized approximately $650 million of revenue and $110 million of operating profit from Mphasis.