HGS to acquire significant part of Mphasis' India domestic BPM business

On June 30, 2015 Hinduja Global Solutions Ltd has entered into definitive agreements with Mphasis Limited and its wholly owned subsidiary MsourcE India Private Limited ("Sellers") for acquisition of significant portion of their Business Process Outsourcing (BPO) business as a going concern on a slump sale basis for consideration of Rs. 17,00,00,000/- (Rupees Seventeen Crores only) ("Transaction"). The closing of the Transaction is subject to fulfilment of conditions stipulated in the agreements and regulatory approvals as may be required.

Upon completion, the acquisition will strengthen HGS' presence in India by adding newer service capabilities and marquee clients in the telecom and banking & financial services (BFS) verticals while bringing in over 7,000 customer experience professionals. The addition of seven delivery centers across six cities - Noida, Raipur, Indore, Mangalore, Pune and Bangalore will help HGS gain a stronger delivery footprint in the country.

"We see an environment of bullishness in India where companies are getting back into investment mode and looking for ways to enable higher growth. This acquisition is opportunistic and fits well into our growth plans. It adds scale and a wider footprint even as we enhance our capabilities and gain an outstanding team of domain specialists to cater to our clientele," said Partha DeSarkar, Chief Executive Officer, HGS.

"I am very happy to see that with this agreement, Mphasis will further intensify focus in Digital, Governance Risk and Compliance (GRC), Application Maintenance Services (AMS) and Infrastructure Services (IS). HGS' specialisation will bring excellent value to the in-scope domestic clients and employees in India," said Ganesh Ayyar, CEO of Mphasis.

Shares of HINDUJA GLOBAL SOLUTIONS LTD. was last trading in BSE at Rs.486 as compared to the previous close of Rs. 490.9. The total number of shares traded during the day was 1552 in over 93 trades.

The stock hit an intraday high of Rs. 494 and intraday low of 485. The net turnover during the day was Rs. 758925.

Source : Equity Bulls

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