IT consultancy and services provider Infosys will be acquiring enterprise resource planning (ERP) software company Panaya for a worth $200 million. The acquisition will see the company use the automation of Panaya’s CloudQuality software-as-a-service (SaaS) suite to enhance its current service lines. The transaction is expected to close before March 31, 2015, subject to customary closing conditions.
According to Infosys CEO and managing director Vishal Sikka,
“The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients.”
“At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes.”
Sikka said during the company’s third-quarter earnings that the company will focus efforts in key categories including cloud, big data, artificial intelligence, omni-channel retailing, and next-gen payment systems. This acquisition seems to be a followed trail of this statement.
Sikka had mentioned last July that he would take time to understand Infosys’ problems and that he believes software solutions should be about expanding the knowledge and capability of an organization. Infosys is currently in the midst of a major overhaul as it faces challenges such as, slower revenue growth than competitors like HCL Tech and TCS, and the departure of several key executives.
Panaya has received $59 million in funding. Its last round, a Series E of $20 million, was disclosed in January. Infosys reported solid third-quarter results, achieving earnings of $522 million on revenue of $2.22 billion for the three months ended December 31, 2014. Infosys’ sales were also up 5.6 percent for the third quarter compared to a year ago.