EDS picks majority stake in Mphasis
Friday, 09 June 2006, 19:30 IST
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BANGALORE: EDS, the U.S. based $20 billion global technology services firm, formally acquired majority stake (51.4 percent) in Mphasis BFL Ltd. for $380 million in cash, a top official said here. "The price of acquiring 83 million shares has been fixed at $4.50 per share. The transaction will be completed by this month-end," EDS chairman and CEO Mike Jordan said. The Bangalore-based Mphasis, listed on the Bombay stock exchange and NSE, is a leading applications and business process outsourcing (BPO) services firm, with 12,000 employees. Post-acquisition, EDS plans to ramp up the headcount to about 20,000 by this year-end. Mphasis serves clients in multiple industries, including financial services, transportation, technology and healthcare. "The acquisition will bolster our offshore delivery capabilities in priority growth areas and allow us to deliver a stronger value proposition to better align with clients' changing needs," Jordan said. Mphasis chairman Jerry Rao said majority ownership by EDS would bring more clients and employees through the latter's global footprint. According to EDS chief operating officer Ron Rittenmeyer, Mphasis will enable the Texas-based firm to accelerate its growth in applications development and add scale in business process and CRM services. MphasiS will, however, continue to operate with its current management team and company name despite change of majority ownership, with Rao as its chairman and CEO.
Source: IANS
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