EDS-India to merge with MphasiS; ratio 4:5

 The company said the swap ratio of the merger as determined by an independent valuation works out to 5:4 (5 shares of MphasiS for every 4 shares of EDS India). Through this merger, EDS' stake in MphasiS will increase to approximately 61.8% from about 51.4% at present.

 The move is pending applicable approvals, and if approved will allow EDS to consolidate its operations in India, the company said. Steve Heidt, chairman of MphasiS & EDS vice president of service delivery operations, said, "This is the next step toward the integration of the operations of MphasiS and EDS. Essentially, we're creating a new family with EDS and MphasiS as one entity."

Jerry Rao, CEO of MphasiS, said, "We are excited about this merger. The combined entity will help us achieve an optimal business model in India and provide clear career paths and opportunities for all employees as we also enhance the service offering to our clients."

 The process of operationally integrating EDS India into MphasiS is expected to complete by the end of this calendar year but would be effective from 1 April 2006 as per the merger proposal approved by the Boards of both the companies.

 EDS currently employs more than 3,000 people in India and has applications & BPO delivery centers in Chennai, Pune, Gurgaon and Mumbai. EDS India reported revenue of approximately $78 million for the year ended 31 March 2006. The combined entity will have employee strength of over 15,000.