Mumbai: The Blackstone Group today said that it would set up a new company with IT infrastructure management firm CMS Group, by carving out the IT infrastructure management and outsourced business services divisions of of CMS Computers.

The division to be carved out comprises card solutions, transaction printing and ATM cash management. Blackstone will own a majority stake in this new company and will have majority representation on the board.

CMS is a leading business and technology solutions provider with over 15,000 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, customising and implementing solutions, onsite service and support, and application management support.

Other businesses in the group include global software solutions unit Systime, CMS Traffic Systems, e-Governance, NVL (Media Broadcasting Equipment), DITL (Security Systems) & Kaycee Industries..

The promoters of CMS, primarily the Grover family, will hold a substantial minority stake in the new company.

The new company has signed up former Microsoft India CEO Rajiv Kaul as executive vice chairman and CEO. Kaul was, till recently, a partner with Actis Capital LLP based out of London heading the technology sector.

CMS was founded in 1976 by Ramesh Grover, along with Varun Prasad and Ramadorai and is ranked among one of the Top 5 IT infrastructure management companies in India and is the market leader in the outsourced business services segments.

The Grover family will continue to manage the remaining businesses within the CMS Group, including Systime, CMS e-governance, CMS traffic systems, access, security, energy and broadcast systems.

''Having brought CMS Group to current leadership levels, we realised that enhanced level of corporate governance through professional management together with private equity participation, is critical to take CMS to the next level," said Ramesh Grover, chairman, CMS Group said.

Grover also said "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.''

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 capitalise 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.''