PUBLICATION: the Economic Times, Bangalore DATE: April 9,2010
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PUBLICATION: The Economic Times, Bangalore DATE: April 9,2010 PUBLICATION: The Economic Times(Mumbai, New Delhi & Bangalore) DATE: April 9,2010 PUBLICATION: Mint (All editions) DATE: April 9,2010 PUBLICATION: Business Standard (Mumbai, New Delhi & Bangalore) DATE: April 9,2010 PUBLICATION: The Hindu Business Line (All editions) DATE: April 9,2010 PUBLICATION: The Financial Express (Mumbai, New Delhi & Bangalore) DATE: April 9,2010 PUBLICATION: Financial Chronicle (All editions) DATE: April 9,2010 PUBLICATION: Financial Chronicle (All editions) DATE: April 9,2010 PUBLICATION: The Times of India (Mumbai & Bangalore) DATE: April 9,2010 PUBLICATION: Hindustan Times (Mumbai & New Delhi) DATE: April 9,2010 PUBLICATION: Deccan Chronicle/The Asian Age (Bangalore, DATE: April 9,2010 Mumbai & New Delhi) PUBLICATION: The Statesman, New Delhi DATE: April 9,2010 PUBLICATION: The Tribune, New Delhi DATE: April 9,2010 PUBLICATION: www.PC World .com DATE: April 8,2010 HP's MphasiS Buys Fortify for Remote Services By John Ribeiro, IDG News Service MphasiS, an Indian IT services subsidiary of Hewlett-Packard, said on Thursday that it has signed a definitive agreement to acquire Fortify Infrastructure Services, a provider of offshore based remote IT operations and management (ROM) services. MphasiS will be paying US$15.5 million up front in an all-cash deal, followed by two performance-related payments over two-and-half years, said Ganesh Ayyar, CEO of MphasiS. Privately-held Fortify has annual revenue of about $20 million, and operations in the U.S. and India. The acquisition is expected to be completed over the next six weeks. Besides bringing 24 clients to MphasiS, privately-held Fortify also has the platform and processes to offer customers outcome-based services relating to both technical and business results, Ayyar said. MphasiS will also be merging some 280 staff from Fortify into its operations, he said. As it expands into the remote services market, MphasiS expects that its offshore delivery of services at a low cost will be attractive to its target market of mid-market customers. The market for remote monitoring from offshore locations is about $4 billion, and will grow about 30 percent this year, according to Ayyar. About $1.2 billion of that business is from mid-market customers, who are looking for partners to solve the challenges of operating and managing their IT, he said. HP owns close to 62 percent in MphasiS which is listed on Indian stock exchanges. The company was earlier a subsidiary of Electronic Data Systems (EDS) which was later acquired by HP. About 58 percent of MphasiS current business comes from HP's clients, Ayyar said. About 10 to 12 percent of business comes directly from HP. MphasiS currently specializes in application development and maintenance, business process outsourcing, and IT infrastructure management, Ayyar said. Application development and maintenance account for 67 percent of revenue. The company had 35,690 staff at the end of January. http://www.pcworld.com/businesscenter/article/193775/hps_mphasis_buys_fortify_for_remote_services.html PUBLICATION: www. IT World.com DATE: April 8,2010 HP's MphasiS buys Fortify for remote services The Indian outsourcing subsidiary plans to expand its offering in remote IT operations and management services by John Ribeiro April 8, 2010, 06:41 AM — IDG News Service — MphasiS, an Indian IT services subsidiary of Hewlett-Packard, said on Thursday that it has signed a definitive agreement to acquire Fortify Infrastructure Services, a provider of offshore based remote IT operations and management (ROM) services. MphasiS will be paying US$15.5 million up front in an all-cash deal, followed by two performance-related payments over two-and-half years, said Ganesh Ayyar, CEO of MphasiS. Privately-held Fortify has annual revenue of about $20 million, and operations in the U.S. and India. The acquisition is expected to be completed over the next six weeks. Besides bringing 24 clients to MphasiS, privately-held Fortify also has the platform and processes to offer customers outcome-based services relating to both technical and business results, Ayyar said. MphasiS will also be merging some 280 staff from Fortify into its operations, he said. As it expands into the remote services market, MphasiS expects that its offshore delivery of services at a low cost will be attractive to its target market of mid-market customers. The market for remote monitoring from offshore locations is about $4 billion, and will grow about 30 percent this year, according to Ayyar. About $1.2 billion of that business is from mid-market customers, who are looking for partners to solve the challenges of operating and managing their IT, he said. HP owns close to 62 percent in MphasiS which is listed on Indian stock exchanges. The company was earlier a subsidiary of Electronic Data Systems (EDS) which was later acquired by HP. About 58 percent of MphasiS current business comes from HP's clients, Ayyar said. About 10 to 12 percent of business comes directly from HP. MphasiS currently specializes in application development and maintenance, business process outsourcing, and IT infrastructure management, Ayyar said. Application development and maintenance account for 67 percent of revenue. The company had 35,690 staff at the end of January. http://www.itworld.com/it-managementstrategy/103902/hps-mphasis-buys-fortify-remote-services PUBLICATION: www. IT World.com DATE: April 8,2010 MphasiS to Buy IT Infrastructure Provider Dhanya Ann Thoppil BANGALORE -- Indian software services company MphasiS Ltd. is to buy privately held Fortify Infrastructure Services for an initial $15.5 million in a move that will partly reduce its huge revenue exposure to parent Hewlett-Packard Co. In a cash deal, Bangalore-based MphasiS will buy 100% equity in the technology outsourcing services provider, which has operations in India and the U.S., gaining access to Fortify Infrastructure's 24 customers. MphasiS will also pay additional amounts to Fortify Infrastructure over the next two-and-a-half years if it achieves certain revenue and profit targets, Chief Executive Ganesh Ayyar told Dow Jones Newswires Thursday. The target is set over the current annual revenue of $20 million that Fortify books, Mr. Ayyar added. "The acquisition will give MphasiS access to marquee customers, an experienced management team, a talent pool of highly specialized professionals..." MphasiS said in a statement. The acquisition comes as MphasiS, which has so far been shielded from the global slowdown because of its direct work and co-projects with H-P, sees pricing pressure from the parent. The company saw a reduction in billing rates at the end of 2009 from H-P within its two main segments--infrastructure technology outsourcing and business process outsourcing. H-P, which accounts for about 70% of MphasiS revenues, acquired the Indian company's parent, Electronic Data Systems Corp., in May 2008. This is the second acquisition by MphasiS in less than a year. The company's previous acquisition was in August, when--in an all-cash deal--it bought an Indian unit of American International Group Inc., which provides software services exclusively to the U.S.-based insurer. The latest deal will also be funded through internal cash, Mr. Ayyar said, adding that the company had about $256 million in cash as of end January. Mr. Ayyar also expects the deal to close in the next six weeks, after which the buy will start adding to revenue and profit. "This is a small deal for them and looks fairly valued also," said a Mumbai-based analyst, who didn't want to be named. The additional payment would be less than the initial $15.5 million as they have already taken 100% equity, he added. Also, the 24 customers from Fortify are largely non-H-P clients. Avendus Capital was the adviser to MphasiS on the deal. http://online.wsj.com/article/SB10001424052702304198004575171412481054270.html?mod=googlenews_wsj PUBLICATION: www.in.reuters.com DATE: April 8,2010 MphasiS to buy Fortify Infrastructure Services MUMBAI (Reuters) - MphasiS Ltd said on Thursday it has signed a deal to acquire privately held IT services firm Fortify Infrastructure Services. Financial details were not disclosed. Fortify Infrastructure provides remote IT operations and management services and has operations in India and the U.S., MphasiS said in a statement to the stock exchange. http://in.reuters.com/article/businessNews/idINIndia-47528920100408 PUBLICATION: www.vccircle.com DATE: April 8,2010 Mphasis Acquires US Firm Fortify Infrastructure Services Private equity firm Baring Private Equity Partners India holds 10.4% stake in Mphasis. Mphasis Limited, a Bangalore-based applications and business process outsourcing (BPO) company, is acquiring Fortify Infrastructure Services Inc, an offshore remote IT operations and management (ROM) services firm in the US. Fortify has operations in India as well, and has a command center in Pune, Maharastra, it said in a statement. VCCircle has learnt that the deal is a combination of upfront payment of $15 million by Mphasis and earnouts. The revenue of privately-held Fortify is understood to be in the region of $20 million. Avendus Capital has acted as advisor to Mphasis in the transaction. According to IT sector observers, infrastructure management is a hotly contested area. It is clearly one of the fastest growing and highly scalable business in long-term IT services play. So, acquiring a good asset in the US corridor is important especially since there are not too many quality assets up for sale. The shares of Mphasis were traded at Rs 650, up by Rs 16.65 or 2.63% at 12:30 pm in the BSE today. The acquisition follows Mphasis’ last year buy of AIG Systems Solutions Pvt Ltd (AIGSS), the captive back office arm of the insurance major, American International Group (AIG), in India. Fortify offers services including data center operations, systems and application infrastructure management, security services, network monitoring and virtualization.