The Blackstone Group has agreed to purchase a majority stake in a new outsourcing company, set up in partnership with India’s CMS Computers, for an undisclosed amount.
The company will be formed by carving out the IT infrastructure management and outsourcing business service divisions of CMS. The group will provide services related to credit and debit cards, printing and ATM cash management.
The family of Ramesh Grover, one of CMS’s founders, will retain a “substantial” minority stake in the company and continue to manage CMS’s remaining business units.
The new company’s executive vice chairman and chief executive will be former Microsoft India CEO Rajiv Kaul. Kaul was most recently a partner at emerging markets private equity firm Actis focusing on technology investments.
Buyout firm Providence Equity Partners also made a recent investment in outsourcing by teaming up with Philippines-based Ayala Corporation to buy call centre outsourcing business eTelecare Global Solutions for $290 million in September.