Blink Acquisition: Key Details, Impact, and What Comes Next

Mphasis has acquired Blink, a user experience research and design firm, in a strategic move to bolster its digital capabilities. This acquisition, valued at $94 million, is set to enhance Mphasis's competencies in user experience and design, leveraging Blink's expertise and strong client base. The integration is expected to drive significant growth and innovation in the industry.

What Is Blink?

Blink, founded around the year 2000, is a global product design firm specializing in user experience (UX) design, user research, prototyping, and collaborative design workshops. Their unique selling points include an evidence-driven design approach, a focus on aesthetics and functionality, and a collaborative process that aligns organizations. Blink has established long-term partnerships with notable clients such as Amazon, NASA, and the New York Times, underscoring their reliability and expertise in the field.

Who Acquired Blink?

Mphasis is a prominent provider of customized technology solutions, cloud services, and digital transformation. The company offers a wide range of services, including application services, blockchain, AI, cyber security, and cloud services across platforms like AWS, Azure, and GCP. Known for its innovative approach and deep domain expertise, Mphasis delivers hyper-personalized digital experiences and customer-centric transformations. Its strong market position is bolstered by partnerships with major industry players and numerous awards and recognitions.

When Was Blink Acquired?

Mphasis acquired Blink on September 21, 2021. This acquisition occurred during a period of heightened focus on user-centered design, with the market for user research, strategy, and design growing at 25-30% annually. This strategic move aligns with industry trends emphasizing customer-centric digital transformation, enabling Mphasis to leverage Blink's expertise to enhance its service offerings and provide high-impact digital experiences to clients.

Why Was Blink Acquired?

• Market Expansion: The acquisition of Blink allows Mphasis to significantly expand its market reach, particularly in the Hi-Tech vertical. Blink's strong client base and market synergies are expected to increase the total addressable market for Mphasis, providing access to marquee logos and strengthening its experience business.
• Technology Integration: By integrating Blink's user experience research, strategy, and design capabilities with Mphasis' existing services, the acquisition aims to provide end-to-end digital experiences for clients. This synergy enhances Mphasis' Front2Back™ Transformation approach, leveraging cloud and cognitive technologies to deliver comprehensive solutions from design through to launch.
• Competitive Advantage: The acquisition strengthens Mphasis' competitive position by combining its technological expertise with Blink's design proficiency. This integration is expected to deliver well-researched, high-impact digital experiences, boosting Mphasis' experience competencies and aligning with its growth strategy. Blink's evidence-driven design process and long-term client relationships further enhance Mphasis' market standing.

Acquisition Terms

• Acquisition Price: $94 million
• Payment Method: All-cash deal
• Key Conditions or Agreements:
  • Blink will retain its name post-acquisition.
  • All Blink employees will remain with the company.
  • The acquisition closed on September 21, 2021, following the signing of a definitive agreement.
  • No governmental or regulatory approvals were required for the acquisition.
  • The acquisition is expected to be revenue and leadership accretive, providing access to marquee logos and strengthening Mphasis' experience business.

Impact on Blink

The acquisition of Blink by Mphasis has led to significant changes in operations and management. Blink's leadership team has been integrated into Mphasis, strengthening the overall organization and ensuring a seamless transition. Operational synergies are expected, particularly in user experience research, strategy, and design. Blink will retain its name and all employees, maintaining continuity while benefiting from Mphasis's engineering capabilities. This integration aims to enhance Blink's ability to deliver end-to-end digital product services, from user research to design and implementation.

In terms of product offerings and services, the acquisition has expanded Blink's capabilities. While continuing to focus on its core UX services, Blink can now offer back-end engineering services, providing comprehensive digital transformation solutions. This synergy enhances the delivery of well-researched, high-impact digital experiences to clients. Employee reactions have been positive, with all staff retained and excited about the new opportunities. Customers are expected to benefit from the enhanced service offerings, which combine Blink's design expertise with Mphasis's engineering skills.

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