Mphasis acquires US-based soft developer
The company's wholly-owned subsidiary acquired Stelligent Systems, LLC for a consideration of US$ 25 million on Thursday.
This acquisition will enhance Mphasis’capabilities in public cloud. Stelligent is a technology services company with specialization in DevOps. The company will provide Mphasis access to strategic opportunities in Cloud DevOps and DevSecOps within the Amazon Web Services (AWS) Ecosystem. The company was acquired through Mphasis Corporation, a wholly-owned subsidiary of MphasiS Limited, said a filing to the exchange.
For Mphasis, the all-cash deal costed approximately US$ 25 million, which including employee retentions for a 100 stake in Stelligent. The company was acquired from Hosting.com. Inc.
On the financial front, in Q2FY19 the gross revenue grew 6.9 per cent QoQ and 24.5 per cent YoY, on a constant currency basis, growth was 3.0 per cent QoQ and 14.8 per cent YoY. The company reported new deal wins of US$ 210 million TCV in Direct International business, majority of which 77 per cent were in New-Gen Services. Net profit increased 4.9 per cent QoQ and 37.0 per cent YoY to Rs. 2,709 million.
Reacting to the development, at 9:23 hours, the stock of Mphasis was trading at Rs. 933.10 per share, up by Rs. 2.60 or 0.28 per cent, while the benchmark BSE Sensex was at 35,073.41, down 164.27 points or 0.47 per cent and Nifty50 was at 10,558.85, down by 39.55 points or 0.37 per cent, on Friday.