EDS acquires majority stake in MphasiS
|Global technology services firm EDS has succeeded in its efforts to acquire a majority stake of Bangalore-based applications and business process outsourcing (BPO) services firm Mphasis BFL.|
According to an official release issued by MphasiS to the BSE today, more than the required 83 million shares of the company have been tendered in response to EDS conditional open offer of Rs 204.5 per share (approximately $ 4.50), which closed on June 05. Total consideration for the transaction that gives EDS a majority stake in MphasiS is approximately $ 380 million cash. The transaction is expected to be completed by the end of June, subject to administrative settlement procedures.
Jerry Rao, chairman & CEO of MphasiS said: "We look forward to EDS majority ownership of Mphasis and the expanded opportunities EDS brings to Mphasis employees and clients through its global footprint. For Mphasis, this means being able to offer our clients infrastructure outsourcing services in addition to our current application services and BPO offerings."
MphasiS will continue to operate with its current management team and company name following the completion of the transaction. Jerry Rao will continue as CEO of the company. Jeroen Tas will continue as vice chairman of the company. EDS will appoint a majority of the company's board of directors and is evaluating the consolidation of its existing India operations with the company's operations, the release said.
The purchase, one of the largest in the Indian IT services sector, gives EDS access to 11,000 India-based employees skilled in advanced applications development, emerging technologies, BPO / CRM services, and an applications development and business process services-focused sales channel, the release added.