Blackstone gains controlling stake in Mphasis

Blackstone is a global company headquartered in New York,it is a leading investment  enterprise.The company’s sole purpose is to create long term value for its investors.

 

Their business is stretched in domains of private equity,real estate,hedge fund solutions and insurance policies.Blackstone reported profit of approximately $1.1 billion in the year 2019.

 

Blackstone  has acquired a major stake in the company Mphasis due to an increase in the demand for cloud computing. Mphasis is a company based in Bangalore that provides outsourcing services,architecture guidance and application management services.

 

After the deal was closed between the two companies Blackstone’s closing share price (87.09USD)was slightly less than the opening share price (87.39). Mphasis closing share price remained at (1,708.50INR) although it recorded a spike in its highest share price(1,743.20).

 

How Banking and Financial Industry is using Cloud 

 

Cloud allows financial institutions to deliver strategic products to the market at a faster pace.It helps in reducing operating expenses and boosts employee productivity.Working with cloud service providers provide best practices and compliance control methods.

 

Cloud structure offers more flexibility .It even reduces the need for hardware maintenance that in turn allows developers to focus on strategic initiatives.Cloud services offer flexible work hours and efficient remote working environment thus  reducing employee’s workload.

 

Amazon Web services ,Serverspace,Cloudways, LiquidWeb are some companies that provide cloud computing solutions such as virtualization to  business enterprises and financial institutions.

 

According to Bloomberg Quint,the agreement between the two companies stated that Blackstone will acquire an additional stake of 26%in Mphasis which amounts to $1.1 billion .The shares are offered at a discount of 1.1% to the closing share price on Friday.The stock price of Mphasis recorded a profit of 6.5%after the deal.

 

Amit Dixit, head of Blackstone’s India operations said”This investment enables us to continue creating value for the long term and provide additional resources to accelerate the company's growth momentum”. This investment will be lucrative for both the companies.