Infosys Ltd, the country’s second-largest software services provider, which regained lost ground and demonstrated consistent performance, is on an acquisition spree as it has set its sights on the next goal to become the industry bellwether once again. This calendar year (2020) till September end, Infosys has acquired three companies abroad clearly demonstrating the company’s commitment to complement its present services to its clients and fill the technology gap.
In September, Infosys announced the acquisition of Czech Republic-based enterprise service management consultancy GuideVision for $35.5 million. In the same month, Infosys headed by Salil Parekh announced to buy Kaleidoscope Innovation, an Ohio, US-based company that designs and develops medical devices as well as consumer and industrial products for $42 million.
In March this year, Infosys announced that it completed the acquisition of Simplus (Outbox Systems Inc), one of the fastest-growing Salesforce Platinum Partners in the US and Australia for $250 million. The announcement of the acquisition was made on February 10, 2020. It was the first acquisition by Infosys in 2020 and second-biggest overall, after its $350-million purchase of Zurich-based Lodestone Holding AG in 2012.
In fact, under the leadership of Salil Parekh, Infosys has stepped up M&A deals to augment its skills in new age technology such as cloud computing, design engineering and digital transformation. While most of Infosys’s acquisitions have been in smaller ticket size, the intent is to scale up the business. Infosys’s domestic rivals such as Wipro Ltd, Cognizant Technology Solutions and HCL Technologies Ltd have done several acquisitions in the past to grow their business. To be sure, Cognizant Technology Solutions has done seven deals this year and in July alone Wipro made two acquisitions within weeks after its new CEO Thierry Delaporte took over.
Acquisition of GuideVision
The acquisition of GuideVision by Infosys is a smart move to build capabilities relevant to the digital priorities of its clients. The acquisition will help strengthen Infosys’ Cobalt offerings portfolio of cloud services and further strengthen nearshore delivery presence in Europe. GuideVision offers a unique combination of strategic expertise, innovative technological knowledge and agile methodology. The company is an award-winning enterprise service management consultancy specialized in offering strategic advisory, consulting, implementations, training and support on the ServiceNow platform.
The company’s end-to-end offerings, including SnowMirror – a proprietary smart data replication tool for ServiceNow instances – enables over 100 enterprise clients to simplify complex business and IT processes. Moreover, GuideVision’s training academy and nearshore capabilities in Czech Republic, Hungary, Poland, and presence in Germany and Finland will strengthen Infosys’ ServiceNow capabilities for its clients in Europe.
Even for GuideVision, the acquisition brings in lots of benefits. It brings an extended portfolio of services that the company can offer to its clients in the European market. Prague-based GuideVision was set up in 2014 with offices in many European countries. The company’s revenue rose to €12.9 million in 2019 from €10.4 million in 2018. $35.5 million consideration for the acquisition is almost 3 times revenue 2019. The acquisition is expected to close during the third quarter of fiscal 2021, subject to customary closing conditions.
Acquisition of Kaleidoscope Innovation
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