Mphasis Explained

Mphasis Limited
Type:Public
Founders:Jerry Rao
Jeroen Tas
Location:Bangalore, Karnataka, India
Key People:Nitin Rakesh (CEO)
Revenue: (FY23)
Operating Income: (FY23)
Profit: (FY23)[1]
Num Employees:33,771 (September 2023)[2]
Owner:Blackstone (39.85%)[3]

Mphasis Limited is an Indian multinational information technology services and consulting company based in Bangalore.[4] [5] The company provides infrastructure technology and applications outsourcing services, as well as architecture guidance, application development and integration, and application management services. It serves financial services, telecom, logistics, and technology industries. Mphasis was ranked #7 in India IT companies and overall #189 by Fortune India 500 in 2019.[6] In April 2016, Hewlett Packard Enterprise sold the majority of its stake in Mphasis to Blackstone Group LP for around US$1 billion.[7]

History

Formation and early years

Mphasis was formed in June 2000 after the merger of the US-based IT consulting company Mphasis Corporation (founded in 1998 in Santa Monica by Jerry Rao[8] and Jeroen Tas.[9]) and the Indian IT services company BFL Software Limited (founded in 1992).[10]

In June 2006 Electronic Data Systems (EDS) purchased a controlling stake in the company (42%) for $380 million and operated the company as an independent EDS unit.[11]

As a Hewlett-Packard company

On 13 May 2008, Hewlett-Packard confirmed that it had reached a deal with Electronic Data Systems to acquire the company for $13.9 billion.[12] The deal was completed on 26 August 2008.

In September 2009, Mphasis changed its brand identity by dropping EDS association to become "Mphasis, an HP Company" after HP retired EDS Brand to become "HP Enterprise Services". Mphasis operated as an independent HP subsidiary with its own board and continued to be listed on Indian markets as "Mphasis Limited".[13] HP owned close to 62% in Mphasis and Mphasis got around 50% of its revenues from HP.[14]

Mphasis marked $1 billion in revenues and registered a consolidated revenue of RS 50.37 billion ($1,099.3 million) for the year ended 31 October 2010 becoming the sixth Indian IT company to do that.[15]

In February 2014, Mphasis changed its logo and the brand name as Mphasis Unleash the Next, seeking to boost business other than from parent Hewlett-Packard, its largest client.[16]

On 30 June 2015, Mphasis announced the signing of a definitive agreement to transfer a significant portion of its domestic business, to Hinduja Global Solutions (HGS). On 10 July 2015, Mphasis announced it will move 2,000 employees to Karvy Data Management Services Ltd (KDMSL) as part of a deal signed to partially sell its domestic outsourcing business to Karvy.

Under Blackstone Group

In 2016, after Hewlett-Packard announced plans to sell its controlling stakes in Mphasis, three companies Tech Mahindra, Apollo Global Management and Blackstone Group entered the race to acquire Mphasis. Tech Mahindra emerged as the frontrunner[17] before it decided to pull out in order to avoid a bidding war with other companies.[18] Later that year, Blackstone acquired Hewlett-Packard's 60.17% stake in Mphasis for 5,466 crore ($815 million); Blackstone's subsequent open offer to acquire an additional 26% from public shareholders failed.[19] [20]

On 29 January 2017, Nitin Rakesh joined Mphasis as the chief executive officer and director.[21] On 7 Aug 2018 the Mphasis Board announced a buyback offer for its shareholders at an approximate premium of 17.4%.[22]

In April 2021, Blackstone committed up to $2.8 billion to acquire controlling stake in Mphasis. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors will be co-investing along with Blackstone.[23]

Company

Offices

Mphasis has more than 60 sales and delivery centers in 19 countries with delivery centers in India, China, Australia, North America, Canada, UK, Japan, Singapore, Indonesia, Tunisia, Mauritius, New Zealand, Taiwan, Mexico, Costa Rica, Taiwan and Europe.[24] In India it has presence with operations in Bangalore, Chennai, Pune, Hyderabad, Mumbai, Noida and Mangalore.[25]

Acquisitions

Mergers

Services

Mphasis provides Information Technology (IT) services, including business process outsourcing, infrastructure technology, and application services. The application services offered by the company includes application development, maintenance and support. The markets served by the company are financial services and insurance, healthcare, manufacturing, government, transportation, communications, and consumer and retail industries.

See also

Notes and References

  1. News: Audited consolidated financial statements as at and for the year ended 31 March 2023 . 30 January 2024 . Mphasis.
  2. News: Group Financial Overview and Trends for the Quarter ending 30 Sep 2023 . 30 January 2024 . Mphasis.
  3. News: Mphasis sees Rs 7,066 cr block deal as Blackstone offloads 15.6% stake . 10 June 2024 . Moneycontrol.
  4. Web site: (Jerry) Rao: 2006 Distinguished Entrepreneurial Alumni Award Winner . Chicagobooth.edu . 2010-08-19 . https://web.archive.org/web/20100528133231/http://www.chicagobooth.edu/news/daa2006/01-rao.aspx . 28 May 2010 . dead.
  5. News: 2022-09-30 . Leeds: Indian tech firm to create 1,000 jobs in city . en-GB . BBC News . 2023-08-06.
  6. Web site: Fortune India 500 complete list. Mphasis. 18 December 2011. 2011-12-18. dead. https://web.archive.org/web/20120103114638/http://mphasis.com/pdfs/FortuneRanking.pdf. 3 January 2012.
  7. Web site: Press Releases Archives . 17 May 2023 .
  8. Web site: (Jerry) Rao: 2006 Distinguished Entrepreneurial Alumni Award Winner . Chicagobooth.edu . 2010-08-19 . https://web.archive.org/web/20100528133231/http://www.chicagobooth.edu/news/daa2006/01-rao.aspx . 28 May 2010 . dead.
  9. http://investing.businessweek.com/research/stocks/private/person.asp?personId=924875 Jeroen Tas: Executive Profile and Biography - Business Week
  10. Web site: Company History of Mphasis . Moneycontrol.com . 2010-08-19.
  11. http://www.business-standard.com/india/news/eds-acquires-majority-stake-in-mphasis/1706/on EDS acquires majority stake in Mphasis
  12. http://news.smh.com.au/world/hp-to-buy-eds-for-139-bln-dlrs-to-expand-services-20080514-2e2f.html HP to buy EDS for 13.9 Billion US Dollars, to expand services
  13. Web site: Mphasis become HP Company. 2010-08-19 . dead . https://web.archive.org/web/20101126084452/http://mphasis.com/pdfs/BrandingIdentity.pdf . 26 November 2010.
  14. http://economictimes.indiatimes.com/tech/ites/tough-time-ahead-for-mphasis-as-hewlett-packard-cut-its-sales-forecast/articleshow/16727352.cms Tough time ahead for Mphasis as Hewlett Packard cut its sales forecast
  15. News: Mphasis crosses $1 billion revenue mark, PAT up 20% . The Times of India . 23 November 2010 . 23 June 2011 . https://archive.today/20120710070020/http://articles.economictimes.indiatimes.com/2010-11-23/news/27592381_1_mphasis-revenue-mark-net-profit . 10 July 2012 . dead.
  16. Web site: MphasiS unveils new brand identity . Businessline . 5 February 2014 . en.
  17. News: Tech Mahindra leads race to buy Mphasis. 27 April 2016. The Times of India.
  18. News: Tech Mahindra pulls out of race to acquire Mphasis. 27 April 2016. Business Standard.
  19. News: Blackstone buys control of Mphasis. 27 April 2016. The Hindu.
  20. News: Blackstone's open offer for Mphasis fails; ends with 60% stake . 10 June 2024 . VCCircle.
  21. News: Mphasis was a jewel hidden in the HP family: new CEO. The Times of India.
  22. Web site: Mphasis buyback offer opens today . Businessline . 7 December 2018 . en.
  23. News: Blackstone, other investors commit up to $2.8 billion to acquire controlling stake in Mphasis . The Hindu . 26 April 2021 . en-IN.
  24. http://www.mphasis.com/ContactUs/Contact_ourOffices.html Mphasis Offices
  25. Web site: 2022-03-15 . This IT Firm With 29K Employees Is Offering Work From Home Jobs; Women-Only Hiring Is On . 2022-06-22 . Trak.in - Indian Business of Tech, Mobile & Startups . en-US.
  26. News: 25 October 2002 . Mphasis to acquire Navion Software of China . Archives.infotech.indiatimes.com . 2010-08-19.
  27. News: 3 April 2004 . MphasiS to acquire Kshema Technologies . . Chennai, India . dead . 2010-08-19 . https://web.archive.org/web/20040622230637/http://www.hindu.com/2004/04/03/stories/2004040305831600.htm . 22 June 2004.
  28. http://www.business-standard.com/india/news/mphasis-to-buy-out-sap-divisionmirc-electronics/142823/ MphasiS to buy out SAP division of MIRC Electronics
  29. http://www.financialexpress.com/news/mphasis-acquires-princeton-consulting-in-rs-60-cr-deal/127037/ MphasiS acquires Princeton Consulting in Rs 60 cr deal
  30. News: 15 March 2005 . MphasiS Buys Eldorado Computing . The New York Times . 2010-08-19.
  31. Web site: 12 August 2009 . MphasiS acquires AIG's IT arm in India . 2010-08-19 . Business Standard.
  32. Web site: 8 April 2010 . HP's MphasiS Buys Fortify for Remote Services . 2010-08-19 . Pcworld.com.
  33. Web site: 1 August 2011 . Mphasis paid 2-4.5 times sales for Wyde in cash: CEO . 2011-08-01 . Moneycontrol.com.
  34. News: 3 December 2012 . MphasiS shares surge over 6% on Digital Risk deal . Zee News . 3 December 2012.
  35. News: DevOps Automation Services Specialist Stelligent Acquired by Mphasis . 16 November 2018.
  36. News: Shinde . Shivani . 22 September 2021 . Mphasis acquires US-based Blink UX for $94 mn in an all cash deal . Business Standard India .
  37. Web site: Mphasis Company History - Business Standard News : Page 1 . Business Standard . Business Standard.
  38. Web site: Mphasis : Merger gains - The Financial Express . mphasis .

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