Rao to Assume Leadership
February 7, 2000: BFL Software Ltd. (BFL) and MphasiS Corporation
(MphasiS) of USA today announced their intent to form a combined
entity under the leadership of Jaithirth (Jerry) Rao who will be
appointed Chairman. This transaction will enable the combined entity
to become a significant participant in the high-value Interactive
Architect IT segment that is estimated to grow from US $8 billion
to US $80 billion by 2003, according to Forrester Research.
Board of Directors of BFL Software Ltd. will meet on February 14,
2000 to consider the proposal to issue 6.5 million equity shares
of BFL Software on a preferential basis in exchange for all common
stock equivalent securities of MphasiS Corporation. The issue will
be in accordance with SEBI guidelines. This transaction is subject
to the approval of all regulatory authorities in India and USA,
and is also subject to the approval of the respective Boards of
Directors and shareholders.
which is an investor in MphasiS and which holds 52% of the paid-up
capital of BFL, will remain a significant investor in the combined
transaction will provide enormous synergies to the combined entity
by putting together the front-end capabilities and marketing expertise
of MphasiS, with the scale benefits of BFL's established development
experience. BFL has a sizeable offshore fulfillment capability with
a CMMi-SEI Level 4 certification. MphasiS has substantial marketing
capabilities with a global business development team and access
to the leading financial institutions of the world.
is a software services company deriving approximately two-thirds
of its revenues from off-shore development. Based in Bangalore,
BFL delivers software services and products to its international
clients, which include Fortune 500 companies.
is an IT company promoted by Jerry Rao who was head of Citibank's
Development Division, Chairman and CEO of Transaction Technology
Inc. The global management team at MphasiS includes Jeroen Tas,
formerly COO of Transaction Technology, Arthur Flew, formerly CIO/CTO
of Diner's Club International, Hans Bloem formerly CEO of Fox TV
(Holland), Mohan Krishnan formerly CEO of Byzan Systems, Willem
Van Duin, formerly CEO of Ingenio, and CFO Yash Joshi who was formerly
with McKinsey & Company.
investors include Barings and Richard Braddock, CEO of Priceline.com
and Director E-Trade, and Chairman of the MphasiS Advisory Board.
MphasiS has had three rounds of funding in the U.S., in each of
which there was significant Venture Capital participation.
belongs to a new breed of high-growth technology companies called
"Interactive Architects" -- providers of web-enabled solutions for
both established companies and Internet start-ups. MphasiS delivers
personalised e-business solutions leveraging Customer Relationship
Management (e-CRM) technologies for Just-in-Time One-on-One Marketing
and Cross-Channel Integration. MphasiS owns the IPR of the "1.2.1"
component suite - a set of software components which are enablers
of these solutions.
has special domain expertise in the Financial Vertical, which has
one of the highest IT spends. The Internet and e-Commerce share
of this segment is expected to grow exponentially; the combined
entity is particularly well positioned to take advantage of this
which has its development base in Bangalore, has several overseas
marketing offices. Headquartered in Santa Monica-California, MphasiS
has marketing offices spanning 3 continents and development centres
in Pune and Mumbai. The combined entity will have 1,300 employees,
17 marketing offices worldwide and 3 development centres in India.
Merrill Lynch advised MphasiS in this transaction, and BFL was advised
by Enam Financial Consultants Pvt. Ltd.