For release: 03 Apr 2006
EDS To Announce Conditional Open Offer To Acquire Majority Stake In Indian Outsourcer MphasiS
PLANO, Texas – EDS will formally announce tomorrow morning in India a conditional open offer to acquire a majority stake in MphasiS BFL Limited (Bombay Stock Exchange: 526299 and National Stock Exchange of India: MPHASISBFL), a leading applications and business process outsourcing (BPO) services company based in Bangalore, India, for 204.5 Rupees (approximately US$4.58) per share in cash, pursuant to Indian securities regulations. This price represents an approximate 30-percent premium to the 26-week average price of MphasiS.
The offer will be contingent upon EDS acquiring 83 million shares, representing approximately 52 percent of current shares outstanding. If at least 83 million shares are not tendered in the offer, EDS will not accept any shares tendered . At current exchange rates, total purchase price for the 83 million shares is approximately US$380 million. EDS expects this transaction to be completed by early third quarter.
“This offer is complementary to our overall strategy to enhance EDS' presence and capabilities in India,” said Mike Jordan, EDS chairman and chief executive officer.
MphasiS currently has more than 12,000 employees, including about 11,000 in India. MphasiS serves clients in multiple industries, including financial services, transportation, technology and healthcare.
About EDS
EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. Learn more at eds.com.
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