HP-promoted IT services provider Mphasis will sell a significant portion of its domestic business to Hinduja Global Solutions (HGS).
Mphasis said it will double focus on global IT services market.
Financial details of the deal were not disclosed.
Mphasis does not share additional details of the divestment. Earlier, Mphasis was looking for a buyer.
The acquisition will strengthen the presence of Hinduja Global Solutions in India by adding service capabilities and clients in the telecom and banking & financial services (BFS) verticals.
Hinduja Global Solutions will be adding more than 7,000 customer experience professionals. It will also add seven delivery centers in six cities including Noida, Raipur, Indore, Mangalore, Pune and Bangalore.
Mphasis will further intensify its focus in Digital, Governance Risk and Compliance (GRC), Application Maintenance Services (AMS) and Infrastructure Services (IS).
Mphasis reported revenues of Rs 1,429 crore in Q4 FY15. Net profit increased to Rs 1,777 million for the quarter from Rs 1,619 million.
“Our employees have found a new home in HGS and will play a pivotal role in augmenting their India footprint. A dedicated unit has been set up to ensure smooth transfer for all employees. There would be no loss of jobs or headcount reduction,” said Elango R, chief human resources officer and head Emerging Geographies Business Unit of Mphasis.
“We see an environment of bullishness in India where companies are getting back into investment mode and looking for ways to enable higher growth. This acquisition is opportunistic and fits well into our growth plans. It adds scale and a wider footprint even as we enhance our capabilities and gain an outstanding team of domain specialists to cater to our clientele,” said Partha De Sarkar, chief executive officer of HGS.