New Delhi: The Competition Commission of India (CCI) has approved Karvy Data Management Services' proposed acquisition of IT solutions provider Mphasis's domestic business process management business.
Giving its green signal, the fair trade regulator said the proposed deal is not likely to have an appreciable adverse effect on competition in India.
Under the combination, Karvy Data Management will acquire Mphasis's domestic business process management or outsourcing (BPM/BPO).
This includes certain contracts pertaining to clients located in Bhubaneswar and Baroda, identified lease agreements and around 2,000 employees.
Karvy Data Management is a provider of business and knowledge process services. Both companies provide similar services in the BPM/BPO segment.
According to the competition watchdog, the market for provision of BPM/BPO services to customers in India is the relevant one.
"It is observed that post combination, the market share of the acquirer would not be significant. Further, the presence of a large number of players in the domestic BPM/BPO sector, including the presence of strong competitors such as Concentrix, Aegis Ltd, Firstsource Solutions Ltd, etc, would act as a competitive constraint on the acquirer," CCI said in its order dated August 4.
In July, Ganesh Ayyar, CEO and ED of Mphasis, had said, "Mphasis has completely exited its domestic voice BPO business, which generated Rs 60 crore of revenues annually."
"We have already sold 2/3rd of our domestic voice business process outsourcing (BPO) business and we are selling the remaining 1/3rd. We are delighted that Karvy is the partner in this case," he had said.