Electronic Data Systems (EDS) plans to announce it will bid about $380 million to acquire a controlling stake in Mphasis, a Bombay-based information technology services outsourcer.
EDS said in a press release Monday that it will bid about $4.58 a share in cash, which represents about a 30% premium to the 26-week average price of Mphasis, which trades on the Bombay Stock Exchange.
The offer will be contingent upon EDS acquiring 83 million shares, representing about 52% of shares outstanding
"This offer is complementary to our overall strategy to enhance EDS' presence and capabilities in India," said Mike Jordan, EDS chairman and chief executive.
Mphasis currently has more than 12,000 employees, including about 11,000 in India.
reported two weeks ago, Mphasis executives confirmed that the two companies were talking about a partnership but wouldn't say whether EDS was considering an ownership bid.
Several investors have speculated that acquiring Mphasis -- and its 11,000 employees -- would quickly build EDS' presence in India and help the company boost its presence in financial services, as 55% of Mphasis revenue is generated from that sector.
Shares of EDS were recently up 16 cents, or 0.6%, to $26.99.