Mphasis Ltd, an Indian software services company backed by global private equity major The Blackstone Group, has announced the acquisition of US-based Blink Interactive Inc for a total consideration of $94 million.
“The acquisition closed on September 21, 2021 (PST) consequent to signing of the definitive agreement in nature of agreement for Plan of Merger between Mphasis Corporation, a wholly-owned subsidiary of the company; a subsidiary of Mphasis Corporation; and Blink Interactive Inc,” Mphasis said in a regulatory filing.
The acquisition is expected to provide access marquee logos, strengthen experience business and its leadership as well as the revenue growth accretive, it said adding that the total consideration of up to $94 million includes earnouts.
The announcement pushed Mphasis stock up to hit a new high of Rs 3,392.35 apiece on BSE and Rs 3,324 per share on the National Stock Exchange.
Founded in 2000, Seattle-headquartered Blink is a User Experience research, strategy, and design firm that provides design consultancy enterprises to create transformative digital products, brands, and experiences for marquee brands.
With over 130 employees, Blink has additional studios in Austin, Boston, San Diego, and San Francisco.
Mphasis CEO and executive director Nitin Rakesh said the acquisition of Blink, consistent with our M&A focus, is at the forefront of providing well-researched design and high-impact digital experiences to our clients and their end customers.
“The total addressable market for the upstream user research, strategy and design is growing 25-30% p.a. i.e., 4-5x the overall IT (information technology) services market,” he said.
