EDS acquries majority stake in MphasiS for 380 mln dollars

New Delhi, June 8 (UNI) EDS, a leading global technology services company, today announced it has acquired a majority stake in MphasiS BFL Ltd, a leading applications and BPO services company in India.

''The acquisition will not only bolster our current offshore delivery capabilities in priority growth areas, but will also allow EDS to deliver a stronger value proposition to better align with the changing needs of clients,'' EDS Chairman and CEO Mike Jordan said.

Over 83 million shares of Mphasis have been tendered in response to EDS' conditional open offer of Rs 204.5 per share. The offer closed on June 5 at a total value of 380 million dollars. The transaction is expected to be completed by June-end, subject to administrative settlement procedures.

CEO Mphasis Chairman and CEO Jerry Rao 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.

Mphasis will now be able to offer the clients infrastructure outsourcing services in addition to the current application services and BPO offerings. The purchase, one of the largest in the Indian IT service sector, gives EDS access to 11,000 India based employees skilled in advanced applications development and business process services focussed sales channel.

MphasiS will be continuing to operate with the current management team and company name following the completion of the transaction.

It is one of the fastest growing offshore providers of IT and business process services with a net profit of Rs 1,498.6 million in the year ending March 31, 2006.

UNI MP RA BD1918