EDS is likely to hike stake in the MphasiS by buying half of Baring India Private Equity’s holding. Baring holds 8.62% in MphasiS.

EDS already holds 60.61% in MphasiS. Baring’s stake is likely to come down to 4.27%. The MphasiS deal is likely to be closed at the current market price by September 2010. None of the parties have confirmed the development.

Standard Chartered is the likely banker for the MphasiS deal.

Transaction Reference: moneycontrol

EDS was acquired by HP in March 2008 for $13.8bn to become the second largest IT services company in the world after IBM. HP along with EDS also contribute majority of MphasiS’s revenues.

EDS made an open offer for 52% stake in Mphasis in April 2006 for $380mn. Barings sold its in 25% stake in the open offer along with CEO Jerry Rao. Later in July 2006, EDS merged its Indian operations with MphasiS and was issued additional shares in return, taking its stake to 60.8%.

Before EDS’s acquisition of MphasiS, Barings held 35% in MphasiS. Baring had entered Mphasis way back in June 1998. The other major investor in Mphasis is Aberdeen Asset Managers which holds nearly four percent.

MphasiS recently acquired US based Fortify Infrastucture Services and AIG’s captive services unit to diversy its client base.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
02/07/10	Mphasis - EDS - Baring India	M&A	Electronic Data Systems LLC	115.00
10/07/09	Mphasis Ltd. - Baring India Private Exit	Private Equity		39.14
10/03/09	Mphasis Ltd. - Baring India Private	Private Equity	Baring India Private Equity Fund III Limited	25.00
04/04/06	Mphasis Ltd. - Baring India Investments Exit	M&A		380.00
03/04/06	Mphasis Ltd. - Electronic Data Systems	M&A	Electronic Data Systems LLC	380.00
31/08/05	Mphasis Ltd. - ChrysCapital II LLC Exit	M&A		29.40
30/06/01	Mphasis Ltd. - ChrysCapital II LLC	Private Equity	ChrysCapital II LLC	10.00
06/02/00	Mphasis Ltd. - Baring India Investments	Private Equity	Baring India Investments Limited PCC	-

 

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  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Baring India Private Equity Fund III Limited	550	IT/ITES/Technology Pharma Consumer Goods Services Basic Industries	www.bpepindia.com

Company
Name	Promoters	Office	Competitor	Website
Mphasis Limited	Hewlett Packard Company	Bagmane Technology Park, Byrasandra, C.V. Raman Nagar	HCL Technologies Limited Tech Mahindra Limited Sevenstrata IT Services Private Limited	www.mphasis.com

  Advisor

Standard Chartered Bank( I Bank)