IT major Infosys on Monday announced the acquisition of US-based Panaya for $200 million or Rs 1,250 crore. This is Infosys' second largest acquisition since the September 2012 deal to acquire Zurich-based Lodestone Holding.
New Jersey-based Panaya provides cloud-based quality management services for enterprise applications; its clients include companies such as Coca-Cola, Mercedes-Benz and Unilever, among others. The all-cash deal is expected to close before March 31, 2015, Infosys said in a statement on Monday.
"Panaya's acquisition reflects Infosys' execution of its Renew and New strategy to enhance the competitiveness and productivity of current service lines by leveraging automation, innovation and artificial intelligence," the company said in a statement.
The acquisition comes at a time when Infosys, India's second-biggest IT outsourcing company, is betting on new technology to boost growth. Under chief executive Vishal Sikka, Infosys has been making big bets on automation and other new technology like artificial intelligence and cloud-based services as the company tries to regain some lost ground from rivals like Tata Consultancy Services.
Infosys, which had a cash pile of Rs 32,000 crore at the end of December 31, 2014, has often been criticised by analysts for being conservative with respect to acquisitions.
Globally, companies use cash to either grow inorganically (by acquisitions) or they return cash to shareholders, analysts say.
Infosys shares ended 0.6 per cent lower at Rs 2,282. The stock underperformed the broader IT-sub index on the BSE, which closed 0.37 per cent higher.
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