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Blackstone to acquire majority stake in VFS Global

Blackstone will pay reportedly $1 billion for a 75 percent stake, and the remainder will be leverage taken on for the acquisition.

October 07, 2021 / 04:12 PM IST
According to VFS Global website, the company has 3533 application centres and operations in 143 countries across 5 continents, with 63 client governments.
(Representative image)

According to VFS Global website, the company has 3533 application centres and operations in 143 countries across 5 continents, with 63 client governments. (Representative image)

Blackstone on October 7 confirmed that it will be acquiring VFS Global, an outsourcing and technology services company for governments and diplomatic missions.

The valuation would be around the $2.5 billion valuation VFS Global and its investors sought when they initiated a sale and a parallel IPO process in 2019, The Economic Times has reported.

Private equity firm Blackstone will pay $1 billion for a 75 percent stake, and the remainder will be leverage taken on for the acquisition.

Moneycontrol could not independently verify this segment in the report.

VFS Global is 90 percent owned by Swedish private equity firm EQT and 10 percent by the Kuoni Foundation and founder-CEO Zubin Karkaria.

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According to the VFS Global website, the company has 3533 application centres and operations in 143 countries across 5 continents, with 63 client governments.

Blackstone, VFS, EQT declined to comment when contacted by The Economic Times.

This will be Blackstone's second investment in IT services this year in India, after rolling over its majority stake in Mphasis. In April, Blackstone said funds managed by the private equity firm have entered into definitive agreements to acquire a majority stake in Mphasis.
Moneycontrol News
first published: Oct 7, 2021 01:05 pm

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