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Infosys looking at 15 $100mn deals overseas in 10 months

Infosys, the country’s second-largest software and services firm, expects to close 15 overseas deals, each worth over $100 million, in the next 10 months, company managing director and CEO S Gopalakrishnan said on Tuesday. It has also identified three to five acquisition targets overseas, including a consulting firm.

“We are in the race for 15 deals of over $100 million outside India,” Mr Gopalakrishnan, or Kris as he is known in the industry, said. The company is also looking at closing smaller deals worth $10-15 million in the same time period.
For acquisitions, Infosys has set aside about $500 million. In July this year, Infosys BPO had signed a $250-million outsourcing contract with Royal Philips Electronics, which included the $28-million acquisition of its three shared service centres in India, Poland and Thailand.

“Our acquisitions need to provide new technology platforms or should provide access to new markets. We are cautious in selecting target companies — looking not only for strategic fits but also ability to retain employees and alignment of values, culture, and ethics,” Kris said. The company is not in favour of hostile takeovers.
Infosys, which recently created a new business unit to cater to the India market, also expects the domestic market to contribute over 5% of its revenue over the next five years. Currently, about 3% of Infosys’ revenues come from the domestic market.

“While India would contribute about 5% of our revenue over the next few years, it would be time before it becomes a big market for us,” Kris said. The company is targeting financial services, telecom, manufacturing and retail sectors in India. He said the addressable Indian IT services market is worth about $5-6 billion.
Source: Economic Times

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