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Blackstone, CMS to form new unit

MUMBAI: The Blackstone group is partnering the CMS group to set up a new company by carving out the IT infrastructure management and outsourced business services divisions (comprising card solutions, transaction printing solutions and ATM cash management) of CMS Computers. Blackstone will own more than 60 per cent stake in this new company and will have majority representation on the board.

The promoters, primarily the Grover family, will hold a substantial minority stake in the new company. The new company has entered into an agreement with Rajiv Kaul, ex-CEO of Microsoft India, to be the Executive Vice-Chairman and CEO of the new company and lead the company CMS was founded in 1976 by IBM engineers Ramesh Grover, along with Varun Prasad and S. Ramadorai. It is now one of the top five IT infrastructure management companies in India and is the market leader in the outsourced business services segment. After the formation of the new company, the Grover family will continue to manage the remaining businesses within the CMS group, namely, SYSTIME (its global software solutions unit), CMS e-Governance, CMS Traffic Systems, Access, Security, Energy and Broadcast Systems.

Mr. Ramesh Grover, Chairman, CMS group, said, “Having brought the CMS group to current leadership levels, we realised that enhanced level of corporate governance through professional management together with private equity participation, is critical to take CMS to the next level. Blackstone has an impeccable record of partnering with companies and supporting their growth and that is the key reason for us choosing Blackstone as our partner.”

According to Rajiv Kaul, the new CEO, “I have always been excited about the opportunity the Indian domestic market offers for outsourcing business services and end to end IT solutions and services. With its strong customer base and geographic reach across 500 locations, CMS provides the ideal platform, in partnership with Blackstone, to capitalize on its leadership position to deliver its true potential.”

CMS is a leading business and technology solutions provider with 15,000 plus professionals worldwide across its various group companies. Its domestic IT services arm offers a wide range of solutions and services across various industry verticals in strategic IT consulting, networking, training, outsourcing, facility management, customising and implementing solutions, onsite service and support, and application management support.

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