UPDATE 1-Blackstone invests in India-based IT company
By Megan Davies
NEW YORK, Dec 1 (Reuters) - Private equity firm Blackstone Group (BX.N) said Monday it will take a majority stake in a company to be formed out of IT infrastructure company CMS Group, marking its seventh deal in India.
The size of the investment was not disclosed.
Under the agreement, Mumbai-based CMS Group will set up a new company by carving out its IT Infrastructure Management and Outsourced Business Services divisions. Blackstone will own a majority stake in the new company and will have majority representation on the board.
The new company has entered into an agreement with Rajiv Kaul, formerly CEO of Microsoft India, to become chief executive of the new venture, the companies said.
The investment is being made out of Blackstone's $22 billion Capital Partners V fund.
Other investments the private equity firm has made in India include construction company Nagarjuna, engineered components company MTAR and container load company Allcargo. (Reporting by Megan Davies, editing by Matthew Lewis)
