Infosys to buy US based automation tech firm Panaya for $200 mn
17 Feb 2015 12:27 AM GMT
Betting big on new technologies to boost growth, country’s second-largest software services firm Infosys will acquire US-based automation technology company Panaya for $200 million (over Rs 1,200 crore).
The all-cash deal is the second-largest acquisition for the Bangalore-based firm, after Swiss consulting company Lodestone, which it bought for about $350 million (Rs 1,932 crore) in 2012.
The move comes as part of Infosys’ ‘Renew and New’ strategy to enhance competitiveness and productivity of current service lines by leveraging automation, innovation and artificial intelligence, Infosys said in a statement.
This is the first acquisition since former SAP Board member Vishal Sikka took as the CEO and Managing Director of the over $8 billion firm in August last year. “The acquisition of Panaya is a key step in renewing and differentiating Infosys’ service lines,” Vishal Sikka said. The transaction is expected to close before March 31, 2015, subject to customary closing conditions.
“This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients,” Sikka said. Panaya's CloudQuality suite will allow Infosys to bring automation to its service lines through an agile software as a service (SaaS) model, help mitigate risk, reduce costs and shorten time to market for clients.
“The acquisition is positive for the company (Infosys) as it will enable better utilisation of the cash. While the exact numbers are not available, even the EV, the size of the company
(Panaya) in terms of sales seems under $100 million,” Angel Broking VP Research (IT) Sarabjit Kour
Nangra said.
The all-cash deal is the second-largest acquisition for the Bangalore-based firm, after Swiss consulting company Lodestone, which it bought for about $350 million (Rs 1,932 crore) in 2012.
The move comes as part of Infosys’ ‘Renew and New’ strategy to enhance competitiveness and productivity of current service lines by leveraging automation, innovation and artificial intelligence, Infosys said in a statement.
This is the first acquisition since former SAP Board member Vishal Sikka took as the CEO and Managing Director of the over $8 billion firm in August last year. “The acquisition of Panaya is a key step in renewing and differentiating Infosys’ service lines,” Vishal Sikka said. The transaction is expected to close before March 31, 2015, subject to customary closing conditions.
“This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients,” Sikka said. Panaya's CloudQuality suite will allow Infosys to bring automation to its service lines through an agile software as a service (SaaS) model, help mitigate risk, reduce costs and shorten time to market for clients.
“The acquisition is positive for the company (Infosys) as it will enable better utilisation of the cash. While the exact numbers are not available, even the EV, the size of the company
(Panaya) in terms of sales seems under $100 million,” Angel Broking VP Research (IT) Sarabjit Kour
Nangra said.
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