Blackstone-run R Systems has acquired 100 per cent equity in the Pune-based product engineering and digital solutions company Velotio for Rs 278.8 crore.
A Blackstone source told PTI that the deal involves Rs 278.8 crore in cash payout and stock options, which will be subject to post-closing adjustments as set out in the share purchase agreement. The stock options part includes the existing Velotio shareholders’ optionally convertible redeemable preference shares.
R Systems is into digital product engineering designing and building next-gen products, platforms and digital experiences.
The deal will help R Systems deepen its product engineering capabilities in the technology, media and healthcare verticals and expand its delivery footprint to Pune, Blackstone said in a statement on Wednesday.
The statement added that the founders of Velotio, Kalpak Shah (co-founder & CEO), Chirag Jog (co-founder and CTO), and the rest of the over a 300-member team of Velotio will continue to be with the company.
In November 2022, Blackstone acquired 52 per cent in the Noida-based R Systems, which is a listed company for Rs 1,500 crore and said it would buy back the public shareholders to take the company private, investing almost Rs 2,900 crore more, but the buyback did not go through. The Competition Commission had in February this year approved the deal too. R Systems is an ITeS and IT company.
“Velotio’s engineering capabilities within its focus verticals neatly complement our vertical presence and deepen our delivery capabilities in areas like cloud, DevOps, data engineering, and generative AI. The deal will also expand our presence to Pune,” said Nitesh Bansal, the managing director & chief executive of R Systems.
R Systems employs over 4,400 across 26 offices and serves companies in the telecom, media, fintech, insure tech and health-tech verticals.
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