Infotech Lead India: IT outsourcing major Infosys is set to buy Lodestone Holding for around $350 million.
Infosys with around $4 billion of cash on its books said the acquisition of Lodestone will strengthen Infosys Consulting and Systems Integration (C&SI) capabilities.
The acquisition is part of Infosys’ 3.0 strategy to expand its consulting & systems integration business.
Infosys has been one of the few software companies in India which have not utilized its cash for acquisitions in a big way.
Infosys will strengthen its presence in Europe and emerging markets like Latin America and Asia Pacific.
Following the completion of acquisition, Infosys will add more than 850 employees, including 750 experienced SAP consultants to the company.
Lodestone will add more than 200 clients across industries including Manufacturing, Automotive and Life Sciences, to the Infosys pool of over 700 clients.
Post-acquisition, the combined Consulting practice focusing on SAP programs will deliver revenues of more than $1 billion, establishing Infosys amongst the global leaders in SAP consulting.
Infosys Consulting & Systems Integration business has more than 30,000 consultants across 10 industry verticals and accounts for 31 percent of the company’s revenue.
“A key plank of our Infosys 3.0 strategy is to expand our Consulting & Systems Integration business. This acquisition fits perfectly into that strategy. Lodestone and Infosys share a culture of unwavering focus on nurturing and maintaining client trust,” said SD Shibulal, CEO & managing director, Infosys.
“Our clients entrust us with their most important business and technology transformation initiatives. We are eager to leverage the widely acknowledged global reach of Infosys and its leadership in the consulting and technology arena to deliver greater value to our clients. This will enhance the momentum that Lodestone is already witnessing in the marketplace,” said Ronald Hafner, chairman and CEO, Lodestone.
Recently, India Post has selected Infosys for Rs 700 crore financial services integration project. As part of the project, Infosys will assist India Post to enhance its financial services across 150,000 post offices in the country.