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Mphasis acquires US based Cloud Automation company Stelligent Systems for $25 million

Mphasis acquires US based Cloud Automation company Stelligent Systems for $25 million

Post this acquisition, Mphasis is likely to strengthen its cloud-based offerings in Cloud DevOps and DevSecOps within AWS Ecosystem.

Mphasis Ltd, one of India’s leading information technology organization which is majorly owned by private equity partner firm Blackstone, has recently acquired US-based cloud computing organization Stelligent Systems LLC for $25 million (Rs 180 crore) in all cash deal.

Stelligent is a technology service organization that spends significant time in developing software automation on Amazon Web Services (AWS), the cloud computing arm of e-commerce giant Inc.

The deal will help and boost Mphasis’ end-to-end capabilities in the public cloud hosting and computing domain especially within AWS services, the Indian company said in a statement.

The exchange will enable the IT organization to offer client driven advanced change at scale and will likewise help with hyper-customized administrations for big business customers, the announcement included.

The procurement will likewise expand Mphasis’ venture into projects, for example, AWS Channel Reseller, AWS Government Partner Program, AWS Managed Service Program, AWS Marketplace Seller and AWS Solution Provider Program. These projects will give the Indian IT firm more added advantage on revenue generation.

Strangely, Mphasis’ securing comes when cloud specialist co-ops, for example, AWS, Microsoft, IBM and Google are shaking to get more piece of the overall industry in India by giving redid or customized items. IBM’s obtaining of Red Hat likewise offers the organization a comparable edge in the nation.

Nitin Rakesh, chief executive officer and executive director at Mphasis, said that as more and more enterprises move to the public cloud, there will not only be a need for customisation and personalisation for customers, but also a need for rapid product development scenarios to reduce time to market.

“Together with Stelligent and its community heroes in the AWS ecosystem, we believe we are uniquely positioned to take advantage of this market opportunity. This allows us to join forces with an equally technically deep company, bringing innovative, in-depth cloud solutions to enterprises in all Mphasis client segments,” Rakesh said.

Established in 2007, the Virginia-based firm has a group of more than 50 architects and holds more than 100 certifications.

“Our architects will incredibly profit by being a piece of a bigger, correlative tech-driven network and in addition serve undertakings in end-to-end AWS DevOps, DevSecOps and extra AWS cloud administrations,” said Bill Santos, CEO, Stelligent.

I was believed that largest IT bet, private equity firm Blackstone played and bought a 60% stake in Mphasis from Hewlett Packard Enterprise Ltd for $837 million in April 2016. At that time, Blackstone bought the shares at the rate of Rs 430 per share

In June 2017, the PE firm denoted its first fractional exit from the IT organization by taking an interest in a buyback offer. In May this year, Blackstone struck its second incomplete exit from Mphasis by offering a 8% stake at Rs 960 for each offer. The PE firm took about Rs 1,500 crore ($221 million) from the arrangement.

With the latest share sale, Blackstone has churned out over Rs 2,000 crore (more than $320 million) from Mphasis, excluding dividend.

This is Mphasis’ fifth obtaining and its first since 2012. The arrangement is additionally its first under the responsibility for firm Blackstone.

Up until now, it has generally acquired organizations situated in the US.

In 2010, Mphasis acquired Fortify Infrastructure Services Inc, an offshore remote IT operations and management (ROM) services firm in the US. Fortify had operations in India as well and had a command centre in Pune, Maharastra.

In 2011, Mphasis acquired US-based software provider Wyde Corp, which was its second bet in the insurance sector. The mid-sized Indian software firm had acquired AIG Software Systems in 2009, its first acquisition in the insurance space.

In 2012, Mphasis Ltd made a deal to buy US-based Digital Risk LLC for $175 million in an all-cash deal with an additional earn-out component. Florida-based Digital Risk provided risk, compliance and transaction management solutions for the mortgage industry.

As per data and information we collected for the financial year 2017-18, Mphasis’ total income rose 8.5% to Rs 3,274.87 crore from Rs 3,018.55 crore in the previous financial year. The company reported a 19.55% jump in profit for 2017-18 at Rs 752.96 crore compared to Rs 629.80 crore for the previous year.

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