EDS-India to merge with MphasiS; ratio 4:5

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IT services & BPO company MphasiS today said its board as well as the board of Electronic Data Systems (India) (EDS India) approved the merger of EDS India, a wholly-owned subsidiary of EDS, into MphasiS BFL.


The company said the swap ratio of the merger as determined by an independent valuation works out to 5:4 (5 shares of MphasiS for every 4 shares of EDS India). Through this merger, EDS' stake in MphasiS will increase to approximately 61.8% from about 51.4% at present.


The move is pending applicable approvals, and if approved will allow EDS to consolidate its operations in India, the company said. Steve Heidt, chairman of MphasiS & EDS vice president of service delivery operations, said, "This is the next step toward the integration of the operations of MphasiS and EDS. Essentially, we're creating a new family with EDS and MphasiS as one entity."
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