Blackstone & CMS to Form New Unit

01 December 2008

Mumbai, December 1, 2008: The Blackstone Group (NYSE: BX; www.blackstone.com) today announced that it is partnering with the CMS Group to setup 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 Ltd. Blackstone will own a majority 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 Mr Rajiv Kaul, ex-CEO of Microsoft India, to be the Executive Vice Chairman and CEO of the new company and lead the company in to the next phase of growth.

CMS was founded in 1976 by Mr. Ramesh Grover, along with Mr Varun Prasad and Mr Ramadorai. It is currently one of the Top 5 IT Infrastructure Management Companies in India and is the market leader in the Outsourced Business Services segments. After the formation of the new company, the Grover Family will continue to manage the remaining businesses within the CMS Group, viz 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 CMS Group to current leadership levels, we realized 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. We are confident that Blackstone’s involvement coupled with Rajiv’s vision and leadership will strengthen the new company across its businesses and build on its current leadership position.”

Commenting on the transaction, Mr. Akhil Gupta, Chairman and Senior Managing Director of Blackstone Advisors India Private Limited said: “We are enthusiastic about this investment as we believe CMS is a market leader and is well positioned to capitalize on the growth opportunity in the IT infrastructure and the outsourcing services market in India. Rajiv brings with him a wealth of experience to lead CMS in the next phase of growth.”

Rajiv Kaul, the new CEO, said, “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.”

The CMS Group

CMS is a leading business and technology solutions provider with 15000+ 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, Customizing & Implementing Solutions, Onsite service & support, and Application Management support. Other businesses in the group include SYSTIME (global software solutions), CMS Traffic Systems, e-Governance, NVL (Media Broadcasting Equipment), DITL (Security Systems) & Kaycee Industries.. Further information is available at http://www.cms.com/

The Blackstone Group

Blackstone (NYSE: BX) is one of the world’s leading investment and advisory firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, the companies it advises and the broader global economy. The firm accomplishes this through the commitment of its extraordinary people and flexible capital. Blackstone’s alternative asset management businesses include the management of corporate private equity funds, real estate funds, hedge funds, funds of funds, debt funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com

Rajiv Kaul

Rajiv Kaul, till recently, was a Partner with Actis Capital LLP based out of London providing leadership for their technology sector. Prior to Actis, he was with Microsoft Corporation for over 10 years. Rajiv joined Microsoft India in 1996 and in 2001 rose to become one of the youngest Country Managers at Microsoft and in corporate India. His last assignment at Microsoft was as Senior Director for Emerging Markets including BRIC based in Redmond, USA. Rajiv is a recognized industry voice and was also an elected member of the Executive Council for NASSCOM (National Association of Software and Services Companies), and a member of the National Council for CII (Confederation of Indian Industry).

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