IBEF: February 12, 2020
Infosys has entered into a definitive agreement to acquire Simplus, a Salesforce Platinum Partner in the USA and Australia, for about US$ 200 million in cash, in order to accelerate its enterprise cloud capabilities.
Moreover, employee incentives and retention payments amounting of up to US$ 50 million are there for meeting certain performance conditions over three years.
The acquisition will be done through its wholly owned subsidiary Infosys Nova Holdings and the deal is expected to close during the fourth quarter of FY20, according to the Infosys regulatory filing.
The intent is to enhance company’s position as an end-to-end Salesforce enterprise cloud solutions and services provider, offering clients capabilities for cloud-first digital transformation through this acquisition, along with the acquisition of Fluido announced in September 2018.
“This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem. The strategic combination of scalable and agile global delivery capabilities of Simplus complements our effort to help global enterprises to transform their businesses,” said Mr Pravin Rao, Chief Operating Officer at Infosys.
Simplus will add its salesforce expertise, industry knowledge, solution assets, deep ecosystem relationships and a broad clientele, across a variety of industries including high-tech, financial services, retail, healthcare, life sciences and manufacturing.
The company has offices across North America, Sydney, Melbourne, London, and a large delivery centre in Manila.
Mr Ryan Westwood, CEO & Co-Founder, Simplus said, “We have viewed this partnership from a culture-first lens from the beginning, and we believe that the alignment of our company values, and the preservation of our company DNA will allow us to accelerate growth and together become the strongest and most respected partner in the Salesforce ecosystem”.
At 10.54 am, Infosys shares were down 0.05 per cent to Rs 772.85 (US$ 10.93) a piece, on BSE.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.