Infosys scouting for acquisitions, more buys matching ‘in-tech’ scale possible: CEO Parekh

New Delhi: After two acquisitions this year, India’s second-largest IT services company Infosys is on the lookout to scoop-up more firms and says the acquisition matching scale of recent in-tech buy is certainly a possibility.

Infosys CEO Salil Parekh said the company is keen on acquisitions in areas like data analytics, SAAS, and may look at some geographies within Europe, and the US.

Asked if more acquisitions could be of the scale matching in-tech, which came with a price-tag of 450 million euros, Parekh said, “Absolutely, I think those would be the size that we will look at in terms of scale, and given our structure we could do a few of those.”

Back in January, Infosys announced a definitive agreement to acquire 100 per cent of the equity share capital in InSemi Technology Services, a semiconductor design services company headquartered in India, for a consideration (including earn-outs, and management incentives and retention bonuses) totalling up to Rs 280 crore. A bigger acquisition followed in three months.

In April, Infosys Germany, a wholly-owned step-down subsidiary, entered into a definitive agreement to acquire 100 per cent of the equity share capital in in-tech Holding -- leading provider of engineering R&D services headquartered in Germany -- for a consideration of up to 450 million euros (about Rs 4,045 crore).

“...we have very good business in engineering services already within Infosys and then we did those two acquisitions, both of them in engineering services, one on semiconductor side and one on the automotive side... very strong businesses, and we feel quite good about expanding that footprint,” Parekh said.

Infosys is eyeing more acquisitions, he said, adding that the company is evaluating several firms. “...we have a good balance sheet and good cash generation and now we are quite comfortable with the integration of acquisition in different areas. We have done engineering services, we will look at other areas... for example data analytics... may look at SAAS (software as a service) areas, and maybe at some other geographies in Europe, maybe the US as well,” he said.