Hewlett Packard Enterprise Co. has announced it will sell its stake in Mphasis, the Indian outsourcing firm. The deal is part of Hewlett Packard’s recent strategy to prop up capital at a time of falling revenues.

Mphasis will be sold to Blackstone Group for about $825m. The Group will acquire at least 84 per cent of Hewlett Packard’s majority stake in the Indian outsourcer for $6.49 a share, signalling some optimism for the firm’s future prospects.

HP Enterprise declared it has recently changed its capital allocation priorities after a recent fall in revenues. Investment will be redirected towards new product and service development, and the company also plans to pursue more mergers and acquisitions.

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