Mphasis acquires US based Stelligent

Mid-size information Technology Company Mphasis announced acquisition of a US based technology services player Stelligent for $25 Million in an all-cash deal. Established in 2007, the Reston, Virginia- headquartered Stelligent specializes in ‘DevOps automation’ on Amazon Web Services (AWS), the online retail giant’s cloud offering.

The company is a premier consulting partner on AWS Partner Network (APN) and holds both AWS DevOps and financial services expertise in deploying their customers’ applications on AWS with greater speed, agility, and security.

For the uninitiated, DevOps is a software development methodology that combines software development with information technology operations. The goal of DevOps is to shorten the systems development life cycle while also delivering features, fixes, and updates frequently in close alignment with business objectives.

Mphasis has earlier acquired Wyde (2011) and Fortify Infrastructure Services (2010). Wyde is an international software vendor and creator of Wynsure — an industry leading insurance policy administration solution whereas Fortify Infrastructure Services is a leading global provider of comprehensive end-to-end Remote IT Operations and Management (ROM) solutions.

Blackstone to acquire Mphasis

Private Equity player Blackstone has entered into a definitive agreement with Hewlett Packard Enterprise to buy a majority stake in Mphasis. This deal represents the largest acquisition by Blackstone in India. Based on the open offer subscription, the purchase price consideration will vary between Rs 5466 crore and Rs 7071 crore.

HPE also signed a master services agreement with Mphasis, committing business of $990 Million over a period of five years. The Duration of MSA is five years with three automatic renewals of two years each. Also, Mphasis will be included in HPE’s Preferred Provider Program, opening up significant additional revenue opportunities. HPE currently owns 60.5% of Mphasis. Blackstone will pay a purchase price of Rs 430 per share to HPE.

Mphasis has strong domain expertise in banking, financial services, and insurance vertical. Its deep relationship with marquee global consumers has enabled it to deliver growth above the industry average in its direct international segment. The company has an experienced management team who has a clear road map for company growth. With a long term commitment of company largest customer, HPE are confident that Mphasis will scale new heights.