ibnlive » Business

Oct 12, 2011 at 02:56pm IST

Infosys on the lookout for acquisitions

Bangalore: The country's second-largest software exporter Infosys is on the lookout for acquisitions in the products and platforms space, a top official on Wednesday said.

"We are in multiple conversations both large and small. Acquisition is extremely strategic and we are looking at acquisitions to augment that strategic direction," Infosys CEO and MD SD Shibulal said.

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In this regard, an acquisition in the product and platform space, investment areas like life sciences and public service or for country penetration would make perfect sense, he added.

Infosys on the lookout for acquisitions

Infosys CEO and MD SD Shibulal said we are looking at acquisitions to augment in an extremely strategic direction.

Asked by when the company could make an announcement, Shibulal said though the company was in dialogue with a few companies, "There is nothing to report which is materially definite."

There has been speculation that Infosys is at an advanced stage of talks to buy a US firm operating in the public services and healthcare space and has revenues of over $ 300 million for $ 450-500 million.

KV Kamath, the newly appointed Chairman of Infosys, has also said the company needs to diversify beyond banking services, which contribute 35.4 per cent to its revenue.

So far, Infosys has made small tuck-in acquisitions, which gave it a platform for entry into new service lines.

In 2009, Infosys acquired Atlanta-based McCamish for $ 58 million, which gave it access to the insurance BPO segment.

Perhaps the only big ticket acquisition made by Infosys so far has been that of Citicorp's stake in Progeon for $ 115.13 million in 2006.

As of September 30, 2011, Infosys' cash and cash-equivalents, including investments in available-for-sale financial assets and certificates of deposits, stood at Rs 18,601 crore.