Corporate | Mphasis to acquire Fortify Infrastructure

Corporate | Mphasis to acquire Fortify Infrastructure

Bangalore: Mphasis Ltd, a mid-sized IT services firm owned by Hewlett Packard Co, said it will acquire Fortify Infrastructure Services, a firm that manages and repair servers of customers remotely from locations such as India.

Mphasis will pay $ 15 million in cash and an undisclosed sum to Fortify promoters based on set revenue target over the next two years, said Mphasis chief executive Ganesh Ayyar.

Fortify, with 24 customers and annual revenues of $ 20 million and presence in India and the US, will function as a business unit of Mphasis.

The global market for remote operations and management is about $ 12 billion, of which around $ 4 billion worth of work can be moved offshore or to low cost locations such as India. The market potential of mid-sized firms outsourcing their remote operations is estimated to be $ 1.2 billion and growing at 30%, according to Mphasis. “This is the segment we think it is attractive. There are no established leaders in the market," said Ayyar.

Mphasis stock closed 2.73% or 17.30 to 650.65 on the Bombay Stock Exchange on Thursday.

—Staff Writer


Firstsource CEO to step down on 27 July

Mumbai:Ananda Mukerji, chief executive of Mumbai-based business process outsourcing firm Firstsource Solutions Ltd, will step down on 27 July, the company announced on Thursday.

He will be replaced by Matthew Vallance, currently a joint managing director and a director on the board of Firstsource, which employs around 27,000 in India. Mukerji will continue as a non-executive vice-chairman on the Firstsource board.

—Lison Joseph


NHPL to build health city in Cayman Islands

Bangalore:Hospital group Narayana Hrudalaya Pvt Ltd., or NHPL, said on Thursday it has signed an agreement with the Government of Cayman Island to build a 2000-bed health city in the capital Grand Cayman. It has formed a joint venture in which the Cayman government is a partner.

Cayman Island has provided NHPL with "major concessions" for building the multisuperspeciality hospital, which will be undertaken in four phases covering 100 acres of land. Phase one will have a 200 bed superspeciality hospital for heart, cancer, ortho and gastrointestinal surgery. Part of the health city will have a large facility of assisted living for elderly Americans.

Government of Cayman has recognized Narayana Hrudayalaya to set up a medical university to train doctors, nurses and paramedical students from American, Canadian, South American and Caribbean regions.

The project will be commissioned in two years.

—Staff writer


PVR to invest Rs120 cr this year on expansion

New Delhi: Retail and entertainment company PVR Ltd plans to invest Rs120 crore this year towards expanding it’s footprint across India, especially in the southern region.

“For south India specifically, we are looking at investing Rs50 crore in the coming 18 months," said Pramod Arora, group president, PVR, at the launch of the company’s first multiplex in Chennai on Thursday. “We have very aggressive expansion plans for this year, not just in the multiplex space but also for PVR Pictures and blu-O."

PVR now has a total screen count of 123 and has extended its presence to 17 cities across India.

—Priyanka Mehra