US IT services firm EDS has made a bid to acquire a 52% stake in Indian BPO firm MphasiS for around $38 million.
Under the proposed deal, EDS would pay $4.58 per share in cash for about 83 million shares in the Bangalore-based vendor.
EDS says the price represents a 30% premium on the 26-week average price of MphasiS and says it expects the transaction to be completed by early third quarter.
MphasiS currently has more than 12,000 employees, including around 11,000 in India, and provides offshore business process outsourcing (BPO) and IT services to firms in the financial services, transportation, technology and healthcare industries.
Commenting on the bid, Mike Jordan, EDS chairman and CEO, says: "This offer is complementary to our overall strategy to enhance EDS' presence and capabilities in India."
The Texas-based firm has reportedly set an April 25 deadline for any competitive offers.
According to press reports, the board of MphasiS has welcomed and approved the bid.