More “In-Tech” Acquisitions Under Consideration by Infosys: CEO Salil Parekh

Infosys, the second-largest IT services company in India, has already acquired two companies this year and is searching for more. The company has stated that a large-scale acquisition similar to its previous in-tech purchase is definitely within the range of possibility.

Infosys CEO Salil Parekh recently spoke with a news agency, where he stated the company's interest in data analytics and software as a service (SaaS) acquisitions, as well as potential exploration of certain European and American regions.

"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." Parekh was asked if future acquisitions of the same scale could be considered, about the 450 million euros paid for in-tech.

Recent Acquisition by Infosys

A semiconductor design services company based in India, InSemi Technology Services, was acquired by Infosys in January for a consideration of up to INR 280 crore (including earn-outs, management incentives, and retention bonuses).

After that, three months later, there was a larger purchase. The German subsidiary of Infosys, Infosys Germany, has agreed to buy out in-tech Holding, a market leader in engineering research and development services, for a maximum consideration of 450 million euros, or approximately INR 4,045 crore, in April. In-tech Holding is based in Germany.

"We feel very good about expanding that footprint", Parekh said, "because we already have a very good business in engineering services within Infosys and because we acquired two other companies that were also in the engineering services industry. One of these companies was focused on semiconductors and the other on automotive," he added.

Expansion in Other Areas

Infosys is presently assessing other companies with a view to making more acquisitions. With a healthy balance sheet and healthy cash creation, the company is now at ease integrating acquisitions across multiple regions. The company has previously provided engineering services and is currently expanding into new sectors, such as data analytics, software as a service (SaaS), and possibly even other European and American locales.

The integration factors, cultural compatibility, financial cost, and strategic synergy, according to Parekh, are crucial.

"We have items in the works that are usually in the pipeline, but they move at their own pace. Before we can decide how to integrate them, we have to figure out whether they are a good strategic match, how much they will cost, and whether they will fit in with our company's culture. We will have to wait and see what comes out of all these negotiations", Infosys stated in a press statement.

The Subsidiaries And Acquisitions Of Infosys Limited

Here is updates on the recent acquisitions of Infosys Limited & its subsidiaries- national & international. Know about all Infosys Subsidiaries.

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