MphasiS looking to acquire smaller IT firms

Leading Indian tech firm and a segment of HP Enterprise Services, MphasiS intends to set up its footprint in the financial, healthcare and telecom services sectors. Buoyed by increasing global as well as domestic demands, the firm has now drawn up a strategy to acquire relatively smaller companies having annual revenue worth $50 million to $100 million. MphasiS plant to make the acquisitions utilizing its cash reserve of around $320 million.

Earlier, this midsized Indian tech firm earned about 66 per cent of its annual revenue from the US and had acquired AIG’s IT services in India in 2009. Again, in April 2010, the Bangalore-based IT and BPO services firm acquired Fortify Infrastructure Services at a cost of $15.5 million.

Quoting MphasiS CEO Ganesh Ayyar, an online news report says that, thus far, they have been operating in the sub-$50 million range. However, presently they are looking to acquire IT firms that have revenues between $50 and $100 million. In addition, this mid-sized Indian IT firm also plans to set up an operational center in Europe to provide to its European clients. MphasiS intends to execute this overseas plan by January.

According to Ayyar, the growth of the company during the last fiscal ended on March 31, 2010 as well as the first two quarters of the 2010-2011 fiscal has reflected in the value of its share, which has improved by 4.5 per cent to INR 636.65. He further said that they expect the pricing to continue to be steady for the ensuing three months ending on October 31, 2010.