- Hewlett Packard Enterprise announced Monday that private equity firm Blackstone Group LP will purchase its majority stake in Indian outsourcing firm Mphasis Ltd. for $825 million, according to a report in the Wall Street Journal.
- HP Enterprise inherited its 60.5% stake in Mphasis through its purchase of technology service provider Electronic Data Systems Corp. in 2008.
- As part of the deal, HPE will continue to work with Mphasis for up to 11 years. Currently HP Enterprise is Mphasis' largest client, according to Blackstone's statement on the deal.
HP Enterprise has recently struggled with a decline in revenue and the sale may be a way for the company to reinforce funds. Last month, the company reported first-quarter net income of $267 million, down from $547 million a year earlier.
The deal is expected to close in the next few months. And HP Enterprise, as Mphasis' largest client, will still capitalize on its specialties, which include application development and maintenance services.
In July HP official split into two companies. While HP Inc. remained focused on selling personal computers and printers, HP Enterprise was tasked with selling servers, storage, network and enterprise services.