Blackstone Group said to seek buyer for CMS Info Systems1 min read . Updated: 18 Sep 2014, 08:02 PM IST
Carlyle Group and KKR are considering offers for CMS Info Systems
Carlyle Group LP and KKR & Co. are considering offers for the Mumbai-based company, which could be valued at about $400 million, the people said. CMS Info Systems has also drawn interest from Apax Partners LLP, Bain Capital Partners LLC and Warburg Pincus LLC, according to the people, who asked not to be identified as the sale process is private.
Blackstone, the world’s biggest manager of alternative assets, has invested $1.7 billion in 20 private-equity deals in India over the past eight years, it said in December. CMS Info Systems transports more than half the nation’s cash, providing services including currency pick-up, secure van transport and replenishment of automated teller machines, its website shows.
First-round bids are due by the end of this month, the people said. CMS Info Systems’ minority investors are also selling their stake in the company, according to two of the people.
Spokesmen for Apax, Bain, Carlyle, CMS Info Systems and KKR declined to comment. Malini Roy, a spokeswoman for Warburg Pincus who works for Citigate Dewe Rogerson India, and Devasis Chattopadhyay, a spokesman for Blackstone at IPAN Hill+Knowlton Strategies, didn’t immediately respond to two phone calls and an email seeking comment.
Blackstone has invested $60 million in the company, it said last year. The US buyout firm owns about 55% of CMS Info Systems, according to three of the people. CMS Info Systems has a fleet of more than 3,000 vans and a network of 150 vaults, according to its website.
CMS Info Systems was formed in 2009, when Blackstone bought a majority stake in some businesses owned by CMS Computers Ltd. It later increased its market share by acquiring Securitrans India Pvt. Ltd., at the time India’s second-largest provider of cash management services, the website shows. Bloomberg