Mohan told The Financial Express that the new firm would market and service the e-commerce products range of company including shopping mall system products and software product infrastructure.

Initially, the company will start with a team of 20 people from BFL. K Sridharan (former CEO BFL) will be the president and chief operating officer of the new arm, he said. On the equity structure of the new arm, Mohan said 90 per cent of the shares would be held by BFL while 10 per cent would be held between Mphasis and angel investors. Initially, the company would focus only on the US and Europe, he said. Mohan said BFL was in the process of changing its name to Mphais-BFL after it look over the US-based Mphasis. Official clearances to this end from the Reserve Bank of India and FIPB were expected within a month, he said.

Under the deal, 6.5 million shares of BFL would be going to the existing shareholders of Mphasis in return, for the complete ownership of the company.Mohan said once the legal procedures were over, the entity Mphasis-BFL would look for a different logo which would be quite different from the existing logos.

He said Mphasis had strong global presence and a sound sales network covering the US, Netherlands, London, Singapore and Switzerland. Post merger, Mphasis-BFL would have 17 offices, seven development centres and around a 1000 people. Mphasis-BFL would continue fo focus on end-2-end solutions in the areas of telecom, finance, retail and media. The company's development activities would be primarily based in Bangalore and Pune and it also would have Delhi, Madras and Hyderabad.