Updated on Tuesday, December 02, 2008, 00:00 IST

New York, Dec 02: US investment fund Blackstone and India's CMS Group have announced the formation of a new company to provide information technology management and business outsourcing services.

Blackstone, in a statement, said yesterday the new company was being created from the IT Infrastructure Management and Outsourced Business Services divisions of CMS Computers Ltd, owned by the Grover family.

It said Blackstone will own a majority stake in the new company and the Grover family will hold a "substantial minority stake."

Financial terms of the deal were not disclosed. Rajiv Kaul, the former chief executive of Microsoft India, will serve as CEO of the new company.

CMS was founded in 1976 by Ramesh Grover and two other partners and is one of the top five IT infrastructure management companies in India. It is also the market leader in business outsourcing services.

"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," CMS Group chairman Ramesh Grover said.

The CMS unit partnering with Blackstone is responsible for card solutions, transaction printing solutions and ATM cash management.

Bureau Report