Infosys to buy cloud consultant
Shares of Infosys ended marginally higher on Monday at Rs 773.80 on the BSE
- Published 12.02.20, 4:02 AM
- Updated 12.02.20, 4:02 AM
- a min read
Infosys is acquiring US-based Simplus, a leading provider and advisor in cloud consulting, for $250 million.
The acquisition is expected to close during the fourth quarter of the current fiscal year, subject to customary closing conditions, the Bangalore-based company said in a late evening announcement on Monday.
Infosys said Simplus was one of the fastest growing “Salesforce Platinum Partners” in the US and Australia. It has its headquarters in the US and offices in London, Manila, Sydney and Melbourne, apart from the US.
Salesforce is a major player in the global CRM (customer relationship management) market.
India’s second largest software services company said there were employee incentives and retention payments amounting up to $50 million on meeting certain performance conditions over three years.
Simplus is majority-owned by institutional investors, founders and key employees, with Salesforce Ventures having a minority stake. Its revenue stood at $ 67.1 million for the fiscal year ending January 31, 2020, against $42 million in the preceding year.
“This acquisition, coupled with the acquisition of Fluido in September 2018, elevates Infosys’ position as an end-to-end Salesforce enterprise cloud solutions and services provider, offering clients unparalleled capabilities for cloud-first digital transformation,” Infosys said.
According to Infosys, the acquisition would reaffirm its endeavour to strengthen its strategy to scale its digital and cloud-first transformation capabilities.