EDS offer to acquire Mphasis stake succeeds

NEW DELHI: The conditional offer by global IT services giant Electronic Data Systems to acquire majority stake in Mphasis has succeeded with the transaction expected to be completed by this month end.

"More than 83 million shares have been tendered in the open offer," a company spokesperson said.

EDS's had made an open offer of Rs 204.50 per share to acquire at least 83 million shares in Mphasis translating to 52 per cent stake in the company for a total consideration of approximately 380 million dollars. The offer had opened on May 17 and closed on June 5.

The offer was contingent upon EDS acquiring 83 million shares otherwise the company would have called off the deal.

Following the acquisition, EDS's operations in India would be the second largest for the company anywhere in the world, with its headcount going upto 20,000 employees by the end of this year.

"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 chairman and CEO Jerry Rao said.