Services behemoth EDS is buying MphasiS, an Indian outsourcing firm for $380m.

Although the price of MphasiS shares, about $4.58 per share, represents a 30 per cent increase on their six month average price, investors were not impressed. MphasiS shares on the Bombay stock exchange fell 1.8 per cent to 212 rupees.

The deal depends on EDS getting 83m shares, or 52 per cent of the firm.

MphasiS employs 11,000 people in India, and another 1,000 elsewhere, and has customers in airlines, banking, brokerage, insurance, retail and technology firms.

"This offer is complementary to our overall strategy to enhance EDS' presence and capabilities in India," EDS chairman and chief executive officer Mike Jordan said.

EDS expects the deal to close in the third quarter.

More details from the EDS press release here. ®

Related stories

Indian IT firms look for data security chief (12 May 2006)
EDS results on track (3 May 2006)
Flextronics sells software biz (18 April 2006)
EDS shutting 21 US, European centres (24 February 2005)
Abbey axes 335 (16 February 2005)
UK.gov IT: it's broke, how can we fix it? (2 December 2004)
EDS Abbey flagship project in doubt (4 May 2004)
Offshore analysts speak with forked tongue (14 April 2004)
Government IT: wasting money to win votes (26 November 2003)