BFL Software buys Mphasis in an all stock deal - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

BFL Software buys Mphasis in an all stock deal

Feb 8, 2000

BFL Software buys Mphasis, a US based software outfit for Rs 8.64 billion in an all stock deal. Mphasis chief Jerry Rao will take over as Chairman of BFL Software. BFL Software was earlier part of the Bangur group. Barings took a 52% stake in the company two year’s back, revamped the company and provided it with business contacts. The company boasted of a client list that included the likes of Compaq and Federal Express.

Till last year 25% of the revenues of Rs 1 bn were accounted for by Y2K servicing. The company however could not make a successful transition and made a loss in the last quarter. This along with the departure of the company’s chief executive revealed the company to be in bad shape.

All along there were rumours that Barings was interested in selling the stake. The current deal has been primarily structured by Barings which is also an investor in Mphasis. The deal is on the lines of the merger of Leading Edge and ECapital where the ECapital chief Suresh Rajpal took over the merged entity. Chase/Oppenheimer which was an investor in both the entities had put in place this deal.

The deals of the current nature highlight the fact that the top class manpower availability is the key to managing growth in the fast track software industries. This is likely to become even more critical in the future. Even in the last few months only those companies, which boast of a top class management have been able to make a successful transition post Y2K.

Market View:
Most analysts have rated BFL Software as a buy primarily because of its lineage, its facilities and its clients. The market views BFL’s current problems as temporary and expects the company to do well in the FY2001.


Equitymaster requests your view! Post a comment on "BFL Software buys Mphasis in an all stock deal". Click here!

  

More Views on News

MPHASIS Announces Quarterly Results (4QFY20); Net Profit Up 32.7% (Quarterly Result Update)

May 15, 2020 | Updated on May 15, 2020

For the quarter ended March 2020, MPHASIS has posted a net profit of Rs 4 bn (up 32.7% YoY). Sales on the other hand came in at Rs 23 bn (up 15.9% YoY). Read on for a complete analysis of MPHASIS's quarterly results.

MPHASIS Announces Quarterly Results (3QFY20); Net Profit Up 5.6% (Quarterly Result Update)

Feb 11, 2020 | Updated on Feb 11, 2020

For the quarter ended December 2019, MPHASIS has posted a net profit of Rs 3 bn (up 5.6% YoY). Sales on the other hand came in at Rs 23 bn (up 15.5% YoY). Read on for a complete analysis of MPHASIS's quarterly results.

MPHASIS 2018-19 Annual Report Analysis (Annual Result Update)

Jul 3, 2019 | Updated on Jul 3, 2019

Here's an analysis of the annual report of MPHASIS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of MPHASIS. Also includes updates on the valuation of MPHASIS.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

MPHASIS SHARE PRICE


Sep 25, 2020 (Close)

TRACK MPHASIS

  • Track your investment in MPHASIS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MPHASIS - ARSHIYA INTL. COMPARISON

COMPARE MPHASIS WITH

MARKET STATS