Mphasis

Public
Traded as BSE: 526299
NSE: MPHASIS
Industry IT services, IT consulting
Founded June 2000
Founders Jerry Rao
Jeroen Tas
Headquarters Bangalore, India
Key people
 Nitin Rakesh (CEO)
Services IT, business consulting and outsourcing services
Revenue ₹6,377 crore (US$890 million) (March 2018)[1]
₹837 crore (US$120 million) (March 2018)[1]
Number of employees
 22,239 (March 2018)[1]
Parent The Blackstone Group
Website www.mphasis.com

Mphasis is an IT services company based in Bangalore, India. 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 #165 by Fortune India 500 in 2011.[2] In April 2018, Hewlett Packard Enterprise sold the majority of its stake in Mphasis to Blackstone Group LP for around $USD 1 billion.

History

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[3] and Jeroen Tas.[4]) and the Indian IT services company BFL Software Limited (founded in 1992).[5]

In June 2006 Electronic Data Systems (EDS) purchased a controlling stake in the company (42%) for $80 million and operated the company as an independent EDS unit.[6] 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.[7] 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".[8] HP owned close to 62% in Mphasis and Mphasis got around 50% of its revenues from HP.[9]

Mphasis marked $1 billion in revenues and registered a consolidated revenue of Rs50.37 billion ($1,099.3 million) for the year ended 31 October 2010 becoming the sixth Indian IT company to do that.[10]

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.

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). HGS is a global BPM leader in optimizing customer experience for clients. 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.

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[11] before it decided to pull out in order to avoid a bidding war with other companies.[12] In April 2016, it was announced that Blackstone had acquired 84 percent of Hewlett-Packard's stake in Mphasis in a deal worth between $825 million and $1.1 billion.[13]

On 29 Jan 2017, Nitin Rakesh joined Mphasis as the Chief Executive Officer and Director.[14] On 07 Aug 2018 Mphasis Board announced buyback offer for it's shareholders at an approximate premium of 17.4%.

Services

Mphasis provides information technology services to its customers around the world. Mphasis provides integrated solutions that include business process outsourcing, infrastructure technology, and application services. The application services offered by the company includes application development as well as applications maintenance and support services. The markets served by the company are financial services & insurance, healthcare, manufacturing, government, transportation, communications, and consumer & retail industries. [15]

Offices

MphasiS at Bagmane Tech Park, Bangalore

MphasiS has more than 30 offices in 19 countries with delivery centers in India, Sri Lanka, China, Australia, Japan, North America and Europe.[16] In India it has presence with centers in Bangalore, Raipur, Chennai, Pune, Hyderabad, Mumbai, Vadodara, Indore, Puducherry, Ahmedabad, and Mangalore.

Acquisitions

  • Navion Software, China (2002)[17]
  • Kshema Technologies, Bangalore, India (2004)[18]
  • Onida Infotech Services (Mirc Electronics SAP Division), Mumbai, India (2004)[19]
  • Princeton Consulting, UK (2005)[20]
  • Eldorado Computing, US (2005)[21]
  • AIG Systems Solutions, India (2009)[22]
  • Fortify Infrastructure Services, US (2010)[23]
  • Wyde Corporation, US (2011)[24]
  • Digital Risk LLC, US (2012)[25]

See also

References

  1. 1 2 3 "Group Financial Overview and Trends for the Quarter ending 31 Mar 2018" (PDF).
  2. ↑ "Fortune India 500 complete list" (PDF). Mphasis. 18 December 2011. Archived from the original (PDF) on 3 January 2012. Retrieved 18 December 2011.
  3. ↑ "Jaithirth (Jerry) Rao: 2006 Distinguished Entrepreneurial Alumni Award Winner". Chicagobooth.edu. Retrieved 2010-08-19.
  4. ↑ Jeroen Tas: Executive Profile and Biography - Business Week
  5. ↑ "Company History of Mphasis". Moneycontrol.com. Retrieved 2010-08-19.
  6. ↑ EDS acquires majority stake in Mphasis
  7. ↑ HP to buy EDS for 13.9 Billion US Dollars, to expand services
  8. ↑ "Mphasis become HP Company" (PDF). Archived from the original (PDF) on 26 November 2010. Retrieved 19 August 2010.
  9. ↑ Tough time ahead for Mphasis as Hewlett Packard cut its sales forecast
  10. ↑ "Mphasis crosses $1 billion revenue mark, PAT up 20%". The Times Of India. 23 November 2010.
  11. ↑ "Tech Mahindra leads race to buy Mphasis". Times of India. Retrieved 27 April 2016.
  12. ↑ "Tech Mahindra pulls out of race to acquire Mphasis". Business Standard. Retrieved 27 April 2016.
  13. ↑ "Blackstone buys control of Mphasis". The Hindu. Retrieved 27 April 2016.
  14. ↑ "Mphasis was a jewel hidden in the HP family: new CEO". The Times of India.
  15. ↑ Mphasis Limited (526299) - Financial and Strategic Analysis Review
  16. ↑ MphasiS Offices
  17. ↑ "Mphasis to acquire Navion Software of China". Archives.infotech.indiatimes.com. 25 October 2002. Retrieved 2010-08-19.
  18. ↑ "MphasiS to acquire Kshema Technologies". Chennai, India: Hindu.com. 3 April 2004. Retrieved 2010-08-19.
  19. ↑ MphasiS to buy out SAP division of MIRC Electronics
  20. ↑ MphasiS acquires Princeton Consulting in Rs 60 cr deal
  21. ↑ "MphasiS Buys Eldorado Computing". The New York Times. 15 March 2005. Retrieved 2010-08-19.
  22. ↑ "MphasiS acquires AIG's IT arm in India". Business-standard.com. 12 August 2009. Retrieved 2010-08-19.
  23. ↑ "HP's MphasiS Buys Fortify for Remote Services". Pcworld.com. 8 April 2010. Retrieved 2010-08-19.
  24. ↑ "Mphasis paid 2-4.5 times sales for Wyde in cash: CEO". Moneycontrol.com. 1 August 2011. Retrieved 2011-08-01.
  25. ↑ "MphasiS shares surge over 6% on Digital Risk deal". Zee News. 3 December 2012. Retrieved 3 December 2012.
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