The Hindu Business Line : MphasiS BFL to acquire Kshema Tech for $21 m

THE MphasiS BFL group said on Friday that it was acquiring Kshema Technologies, a Bangalore-based software services firm, for $21 million in a stock-and-cash deal.

The cash component of the deal is around $6.8 million.

The transaction is expected to be completed in the June quarter of the current fiscal and be EPS accretive in the first year itself.

Announcing the deal, Mr Jerry Rao, Chairman and CEO, MphasiS BFL, said: "The Kshema buy would strengthen the company's technology practice and be a strong catalyst for growth. It will provide a fillip to our service offerings in the embedded solutions and industrial automation space."

The acquisition would also help MphasiS become a full service, broad spectrum IT services and BPO firm, he added.

Kshema, which provides solutions for industrial automation, embedded technologies, healthcare and life sciences and enterprise applications, has about 400 staff and reported revenue of close to Rs 60 crore with net profit of around Rs 7 crore.

It has an active client base of some 35 companies including Symbian and Invensys.

Venture capital firm Global Technology Ventures holds 46 per cent stake the company, followed by Singapore Computer Systems, which owns 30 per cent.

The rest is held by promoters and employees.

Mr Rao said that MphasiS plans to integrate its technology practice with Kshema and create a separate business unit that would be headed by the Kshema CEO, Mr Anant Koppar.

The technology practice accounts for close to 15 per cent of its overall services revenues and has a team of some 250 professionals.

Its clientele includes HP, NEC and a large Korean manufacturer.

MphasiS would absorb all the Kshema staff, including the top management.

"It is a kind of homecoming for the Kshema top management, including Mr Koppar, and the COO, Mr Mutalik, both of whom were formerly with BFL Software," Mr Rao said.

MphasiS shares ended 4.11 per cent higher at Rs 558.55 on the BSE on Friday following the announcement.

More Stories on : Software | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Factors that are worrisome for BPO sector

Retail investors get fewer ONGC shares

`Indica successor in final stages of design'

MphasiS BFL to acquire Kshema Tech for $21 m

Silver hits all-time high of Rs 12,270

ICICI Bank issue oversubscribed 109 pc

RBI must exit all corporate shareholding, says Jaswant

MCS withdraws from ICICI Bank, Datamatics