BANGALORE: In a significant announcement, EDS
has declared that it has acquired a majority stake of the Bangalore-based MphasiS.
The announcement, made at a joint press conference by the two companies, said
that EDS has acquired the more than the stipulated 83 million shares of MphasiS.
MphasiS shares in excess of 83 million have been tendered as reaction to EDS's
offer of Rs 204.5 per share.
``This gives us muscle and aggressive skills that will complement EDS,''
said Steve Heidt, vice president (Operations), EDS while addressing mediapersons.
Jerry Rao, chairman and CEO of MphasiS said that the Bangalore-based company
would gain from EDS' competency and leverage its scale. ``We can leverage EDS
competencies in the areas where MphasiS doesn't have the skilled,'' opined
Rao. MphasiS employees will have the great opportunity to become a part of the
big family, added Rao.
``EDS is strong in ITeS. We are strong in the Java and CRM space. That's
where we can complement EDS,'' said Jerry Rao.
The announcement on the exact ratio of shares would be made by June 28, said
Saurabh Shah, director, Citigroup India Investment Banking. Citigroup is acting
on behalf of TH Holdings.
EDS hopes to make India the second largest operation in its family following
its acquisition of majority stake. ``We are well in track to double our capacity
in India,'' said Heidt.
Speaking about the company's growth plans Heidt said that India stands
first in its priority list. ``After India, we are looking at growing in China,
Latin America and Eastern Europe,'' added Heidt. EDS has presence in Hungary
and Brazil. Currently EDS has more than 3000 employees in India.
Following the acquisition of majority stake EDS has projected the total India
work force to surpass 20,000 by the end of the year.
Despite the development, MphasiS' Jerry Rao and Jeroen Tas will continue to
hold their posts of CEO and vice chairman respectively.
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