by CIO Staff

EDS to Purchase Stake in Indian Firm

Apr 03, 20061 min
Mergers and Acquisitions

Electronic Data Systems will make a conditional offer to obtain a controlling stake in Indian outsourcing and software firm Mphasis BFL for roughly $380 million, The Wall Street Journal reports.

Plano, Texas-based EDS plans to offer the company 204.5 rupees (roughly $4.58) for each of its shares, according to The Journal.

As a condition of the deal, EDS would acquire 83 million shares, or approximately 52 percent of Bangalore-based Mphasis’ outstanding shares, The Journal reports.

“This offer is complementary to our overall strategy to enhance EDS’ presence and capabilities in India,” said EDS Chairman and Chief Executive Mike Jordan, according to The Journal.

Mphasis currently employs more than 12,000 people, 11,000 of whom are based in India.

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