Mphais BFL Ltd., a provider of IT services and BPO solutions, has announced that its board has approved the merger of EDS India, a wholly-owned subsidiary of EDS.
The two companies would integrate their operations in India by December although the merger, which has to be approved by shareholders, stock exchanges and courts, will be effective from April 1 this year.
"We're creating a new family with EDS and MphasiS as one entity, with combined operations and one voice to provide greater efficiency," Steve Heidt, chairman, MphasiS & EDS vice president of Service Delivery Operations.
The swap ratio of the merger as determined by an independent valuation of the two companies works out to 5:4. The merger is also expected to be EPS accretive to MphasiS and will enhance shareholder value.
Through this merger EDS' stake in MphasiS will increase to about 61.8 percent from about 51.4 percent at present.
EDS currently employs more than 3,000 people in India and has Applications & BPO delivery centers in Chennai, Pune, Gurgaon and Mumbai.
The combined entity will have employee strength of over 15,000, making it one of the larger IT & BPO employers in the country. EDS and MphasiS had earlier announced that they plan to grow this to about 20,000 employees by the end of calendar 2006.
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