MphasiS BFL surges on overseas acquisition buzz

DALAL STREET SPIKES

MphasiS BFL stock was in the limelight on Monday after the company said it would buy London-based Princeton Consulting for £ 7.7 million ($ 14.4 million) in an all-cash deal. The stock went up 5.21 per cent to Rs 257.55. More than 1.49 lakh shares changed hands at the counter on BSE.

Princeton Consulting is a profit making company with annual revenue in excess of £6 million. Princeton offers niche consultancy services since 1997.

The overseas acquisition news has triggered renewed buying in the counter despite the company's not so encouraging December quarter results.

For Q3 December 2004, MphasiS reported a 6 per cent fall in consolidated net profit to Rs 26.86 crore, even as sales rose 29 per cent to Rs 191.82 crore.

This is the second acquisition announced by MphasiS over the last one year or so. Earlier, the company acquired the Bangalore-based Kshema Technologies, for approximately $21 million through a combination of stock and cash.