Mphasis Ltd.'s Subsidiary, Mphasis Corporation, Completes $132.5 Million Acquisition of Silverline

Mphasis Corporation, a wholly-owned subsidiary of Mphasis Ltd., has successfully completed the acquisition of Sonnick Partners LLC and its subsidiaries, a move announced through an official exchange filing. The acquired entity, known as "Silverline," operates across key industry sectors, such as financial services, healthcare, and media & entertainment.

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Mphasis Corporation, a wholly-owned subsidiary of Mphasis Ltd., has successfully completed the acquisition of Sonnick Partners LLC and its subsidiaries, a move announced through an official exchange filing. The acquired entity, known as "Silverline," operates across key industry sectors, such as financial services, healthcare, and media & entertainment.

The acquisition was finalized with a substantial cash consideration of $132.5 million, facilitating a complete takeover of the 100% shareholding. Notably, this transaction is set to conclude within the current month and is exempt from requiring any government or regulatory approvals, expediting the integration process.

Founded in 2009, Silverline has emerged as a prominent Salesforce service partner, offering an array of services that include consulting, advisory, implementation, and managed services. The company's operational footprint extends to North and Central America, as well as India.

This strategic acquisition is poised to enhance Mphasis' standing as a comprehensive provider of Salesforce enterprise cloud solutions and services. It will empower Mphasis to cater to clients with state-of-the-art capabilities tailored for cloud-first digital transformation, aligning perfectly with industry trends and demands.

Silverline's financial performance in the past three years, spanning 2020, 2021, and 2022, demonstrates consistent growth, with annual turnovers of $54.5 million, $60.8 million, and $75.8 million, respectively. This acquisition opens doors to further financial synergies.

Nitin Rakesh, the Managing Director and CEO of Mphasis expressed the strategic significance of this move. He highlighted that the acquisition is instrumental in advancing Mphasis' core strategic initiative, which focuses on converging Customer Experience (CX) transformation, contact center modernization, and conversational AI-enabled automation. The goal is to meet the ever-evolving and dynamic needs of their clients.

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Silverline's extensive experience as a Salesforce partner for over 15 years enhances its appeal and expertise in the field. This acquisition solidifies Mphasis' commitment to providing cutting-edge technology solutions.

While Mphasis Corporation's shares experienced a decline on the day of the announcement, it's important to note that they have been performing remarkably well in 2023, with a notable 24.1% increase. This positions Mphasis among the top-performing IT stocks of the year, underscoring the confidence investors have in the company's strategic moves and growth prospects.