New Delhi: The Blackstone Group has emerged as the strongest contender to acquire (Information Technology) IT services firm Mphasis from Hewlett Packard Enterprise in a deal, which is said to be worth over $1 billion.  

After Tech Mahindra, the third serious contender had opted out, buyout funds Blackstone and Apollo Global Management submitted binding offers at 60.4% stake last week.  

According to The Economic Times report, Blackstone is said to have then raised its bid to edge past Apollo in the battle between two private equity heavyweights where the difference between the two offers was said to be close.

For now, The Blackstone Group is backing the present management system led by Chief Executive Ganesh Ayyar. The fund is already done tying up financing from Deutsche Bank, Standard Chartered and ING.

Blackstone is the world’s largest Private Equity (PE) fund with $311 billion under management. It’s based on a market value of Rs 9,779.76 crore for Mphasis whereas HP’s stake is valued at Rs 5,906.9 crore. 

Mphasis, which rose 1.7% to Rs 465.30 at close on Wednesday on the Bombay Stock Exchange, has gained 20.33% over the past year. 

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