17 May 2023

BDA advises R Systems on its majority acquisition by Blackstone

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BDA Partners is pleased to announce that private equity funds managed by Blackstone (“Blackstone”) have signed definitive agreements with Satinder Singh Rekhi and other current promoters (“Promoters”) to purchase a majority stake in R Systems International Limited (“R Systems”), a specialised Digital Product Engineering services firm listed on the Indian stock exchanges. Blackstone will also launch a conditional delisting offer and total transaction value could go up to US$359m. The transaction is expected to be completed in the coming months, subject to customary closing conditions and regulatory approvals.

BDA Partners acted as the exclusive financial advisor to the sellers of R Systems. 

R Systems is one of the leading providers of IT services, specialising in Digital Product Engineering services, serving over 250 customers in Technology, Media, and Telecom (TMT), and financial services sectors globally. R Systems is a partner of choice for enterprise customers, with a strong suite of capabilities in software product engineering, artificial intelligence, data analytics, the Internet of things (IoT), robotic process automation and cloud. The company employs over 4,400 people across 18 delivery centres in N America, E Europe, APAC, and India. R Systems’ revenue for the last 12 months, to September 30, 2022, was INR 1,445 crore (~US$189m), registering a 36% year-on-year growth.

Dr. Satinder Singh Rekhi, CEO & Promoter of R Systems, said: “Founding and building R Systems has been an incredibly rewarding journey for me. We are excited to welcome Blackstone and benefit from their scale, expertise, and global track record in the Technology sector. I would like to thank the BDA team for being the trusted financial advisor in this transaction. The BDA team, led by Manoj and Jyotin, have been exceptional throughout the process. Their work ethic, professionalism, global investor access and deep relationships allowed us to find the right investor for our next chapter of growth. They worked tirelessly to ensure that we achieve the desired outcome in a timely manner. I would definitely recommend the BDA team to other clients as the “Preferred Partner of Choice” for their future M&A transactions.” 

Jeff Acton, Partner and Head of Technology, BDA, said: “We’re delighted to have advised R Systems on this marquee transaction. BDA, along with our partner William Blair, have been highly active in IT Services M&A and PE buy-outs. We expect to keep increasing our market share in the US–India corridor.”

Manoj Balwani, Managing Director and Head of Technology, India, BDA, said: “The adoption and acceleration of Digital Engineering is at an all-time high across enterprises. That will continue to drive deal momentum in this space. Dr. Rekhi is a truly inspirational entrepreneur. His deep focus on embedding the science of Happiness in the value systems of R Systems has made the company a differentiated play in the industry. We’re proud to have leveraged our global sector expertise to deliver the best outcome for R Systems and its shareholders. We wish Dr. Rekhi, and all employees of R Systems, the very best for the next chapter of their careers.”

About R Systems

R Systems is a one of the leading providers of Information Technology services, specializing in digital product engineering. The firm partners with customers to enable or elevate their digital transformation with diversified digital offerings. Services and solutions span major business verticals: technology, media, telecom, and financial services. The firm maintains 18 development and service centers to serve customers in North America, Europe, and APAC. Over 25+ years, the firm has been empowering organizations with 25+ offices worldwide and a workforce of 4,400+ professionals ensuring seamless services to clients across the globe. www.rsystems.com

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $951bn in assets under management includes investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets, and secondary funds, all on a global basis. On Twitter @Blackstone. www.blackstone.com

About BDA Partners

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services, Sustainability and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.

US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc, a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com