Blackstone-backed R Systems To Acquire Velotio For $34 Mln

Private equity major Blackstone-backed R Systems International Ltd. agreed to acquire Indian product engineering and digital solutions provider Velotio Technologies Private Ltd. for 278.8 crore rupees ($34 million) in cash.

The acquisition will help the Blackstone portfolio company to deepen its product engineering capabilities in the technology, media, and healthcare verticals as well as expand its India delivery footprint to Pune, R Systems said in a stock exchange announcement.

The Noida, Uttar Pradesh-based said Velotio’s co-founders Kalpak Shah and Chirag Jog, as well as the rest of its team will join the combined business to drive the digital product engineering company’s next phase of growth.

R Systems’ Managing Director & Chief Executive Officer Nitesh Bansal said Velotio’s deep engineering capabilities within its focus verticals complement its vertical presence and deepen the company’s delivery capabilities in areas like cloud, DevOps, data engineering, and generative artificial intelligence.

Velotio, which has a team of over 300 engineers, combines complex engineering, data expertise, cloud-native, and design capabilities to build innovative products for global customers, including Nasdaq-listed enterprises, according to the statement.

“Velotio’s attractive roster of customers and a very entrepreneurial management team are great additions to R Systems – they can help us expand our partnerships and deliver enhanced value to our customers,” Bansal said.

R Systems said the total consideration is subject to post-closing adjustments. It added the existing shareholders of Velotio also hold optionally convertible redeemable preference shares and the company may at a later stage acquire such shares.

Velotio’s turnover stood at 127.4 crore rupees in FY23, up from 82.8 crore rupees a year earlier, according to the statement.

Technology Holdings acted as Velotio’s exclusive financial advisor. The acquisition is subject to customary closing conditions.

Note: $1 = 82.5634 Indian rupees)

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